NEW YORK (Standard&Poor's CreditWire) Aug. 28, 2000--Standard&Poor's today raised PetsMart Inc.'s corporate credit rating and bank loan rating to double-'B'-minus from single-'B'-plus, and its subordinated debt rating to single-'B' from single-'B'-minus. The outlook is stable. The ratings upgrade reflects operating improvements over the past two years and the sale of the company's U.K. subsidiary in fiscal 2000. The ratings reflect operating challenges associated with PetsMart's aggressive growth strategy, a highly competitive and fragmented pet food supplies and services industry, and a highly leveraged capital structure. These risks are mitigated somewhat by the company's leading position in the industry. Standard&Poor's believes that PetsMart's aggressive growth in recent years has contributed to operating challenges that have
