...AutoZone Inc.'s (AutoZone) Long-Term Issuer Default Rating (IDR) reflects its leading position in auto parts retail, steady sales and EBITDA growth, high profit margins, as well as its steady credit metrics. Fitch Ratings expects EBITDAR leverage (adjusted for reverse factoring) to remain in the low 3x range. AutoZone benefits from its leading position in a fragmented market, along with the industry's resilience to discount and e-commerce competition due to inventory investment needs, a heavy service component and purchase immediacy requirements. The rating also considers AutoZone's financial policy and the expectation that debt may increase over time to fund its share buyback program, consistent with the company's publicly articulated financial policy....
