The ratings on Phoenix-based PetSmart reflects Standard&Poor's assessment that the company's business risk profile will remain "fair" and its financial risk profile will remain "intermediate" over the next year. The fair business risk profile reflects PetSmart's well-established position as the largest player in the highly fragmented and competitive pet supply retail industry. The company's focus on differentiation, introduction of exclusive brands, and growth of private-label penetration enabled it to gain market share from traditional supermarkets and discounters. We believe these factors have propelled recent profitability gains. Trailing-12-month Oct. 28, 2012, revenues grew 8.7% over the same period last year and EBITDA margin improved about 60 basis points to about 15.3%. Although the industry is vulnerable to changes in
