PetSmart Credit Rating Upgraded

PetSmart’s (Phoenix) credit rating has been upgraded to a B- from a CCC by the S&P Global, according to Retail Dive. Proceeds from Chewy’s (Dania Beach, Fla.) initial public offering (IPO) has helped upgrade the rating – it helped the retailer repay roughly 15 percent of its term loan, Retail Dive reports.

S&P told Retail Dive: “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 deleveraging.”