Petco Credit Rating & NNN Cap Rate

Petco Business Overview

Petco is a pet specialty retailer founded in 1965. It sells pet food and supplies and offers grooming, training and veterinary services. Its fiscal 2025 Form 10‑K reports about 1,400 pet care centers in the United States and Puerto Rico, plus about 150 in Mexico and 2 in Chile through a joint venture, and net sales of US$5.96 billion for the year ended January 31, 2026.

Petco Credit Profile

Petco is rated B in our database, below investment grade. It is a public company that files audited financial statements with the SEC. Confirm the tenant entity and whether the parent guarantees the lease.

Ratings come from our tenant ratings database; the source note below shows where each rating comes from. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.

Source: S&P Global Ratings B, as of December 12, 2025. Ratings checked October 8, 2026.

Petco NNN Cap Rates

Live asking cap rates for Petco and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 16, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: Ollie's Bargain Outlet.

Petco leases all of its U.S. and Puerto Rico pet care centers, generally at sites co-anchored by destination stores, with original lease terms generally of ten years (Form 10‑K). Compare a property with listings of the same tenant and with other specialty retailers.

What to Check in a Petco Lease

• Tenant and guarantor: which entity signs the lease and whether the rated parent guarantees it.
• Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
• Co-tenancy: for shopping center locations, co-tenancy and go-dark provisions.
• Re-use: the size of the box and the pool of possible replacement tenants.
• Rent versus market: whether rent is at or below market rent.

Pros and Cons

Petco vs. PetSmart

Ratings from InvestmentGrade.com’s ratings database; where only one rating is shown, we have not identified a current rating from the other agency.

Sources: Petco Health and Wellness Company, Inc. Form 10‑K for the fiscal year ended January 31, 2026 and Form 10‑Q for the quarter ended August 1, 2026; ratings from InvestmentGrade.com’s ratings database.