Largest player in the highly fragmented and competitive pet supply retail industry; Relatively stable profitability; and Increasing e-commerce competition. Improving credit protection measures; and Adequate liquidity. The stable rating outlook on PetSmart Inc. reflects our expectation that favorable industry dynamics, growth of services, and focus on differentiation will continue to propel profitability growth and enhance the company's credit profile. Although unlikely, we could lower the rating on PetSmart if a weak economy and competitive pressures hurt sales and margins, leading to a rise in leverage to over 3x. This could occur if EBIDTA falls about 37% from May 5, 2013, levels and debt remains constant. Higher leverage could also result from a more aggressive financial policy such that PetSmart uses
