U.S. pet supply retailer PetSmart's stable performance has led to modest credit measure improvement. We anticipate modestly positive operations over the near term, further strengthening the company's credit protection profile. We are revising our outlook to positive from stable and affirming our 'BB' corporate credit rating on PetSmart. The positive outlook reflects our view that positive sales trends and improving sales mix will benefit profitability and enhance the company's credit profile. On July 20, 2011, Standard&Poor's Ratings Services revised its outlook on Phoenix-based PetSmart Inc. to positive from stable. At the same time, we affirmed our 'BB' corporate credit rating on the company. The rating on PetSmart reflects our expectation for operational stability and modest improvement of credit
