...- U.S.-based specialty pet retailer PetSmart Inc. recently repaid about 15% of its term loan using after-tax net proceeds from the IPO of its Chewy subsidiary. - S&P Global Ratings expects modest improvement in PetSmart's performance despite persistent industry headwinds. - We are raising our issuer credit rating on PetSmart to 'B-' from '###'. - We are also raising our issue-level ratings on the company's first-lien debt to 'B' from '###' and revising the recovery to '2' from '4', reflecting the debt reduction and an upward reassessment of enterprise value at simulated default following the IPO of Chewy. - At the same time, we are raising our issue-level rating on the company's senior unsecured debt to '###+' from '##', and revising the recovery to '5' from '6'. - The stable outlook reflects our view that PetSmart's store performance will improve modestly over the next 12 months and Chewy will continue to grow revenue at a fast pace, resulting in positive free operating cash flow and modest...
