U.S.-based PetSmart Inc.'s attempted refinancing, which would have significantly reduced its outstanding debt, was unsuccessful. Therefore, we are lowering our issuer credit rating on PetSmart to 'B-' from 'B'. Our 'B' issue-level rating on the company's existing secured debt and our 'CCC+' issue-level rating on its existing senior unsecured debt remain unchanged. The positive outlook reflects our expectation PetSmart's leverage will continue to decline toward 6x and incorporates our view that the company will pursue another refinancing in advance of its term loan maturity becoming current, which could lead to accelerated deleveraging. Still, we believe that PetSmart will complete a refinancing of its term loan before it becomes current in March 2021. However, the structure and timing of the future
