Leading position in retail auto parts aftermarket; Large, diverse store footprint and efficient distribution infrastructure; Strong and stable cash flow generation; and Strong operating margins compared with industry peers. Substantial share repurchases activity; Demand sensitivity to fuel price changes; and Historically weak or negative organic growth in the Do-It-Yourself (DIY) segment of the industry, which could reemerge over time. Standard&Poor's Ratings Services' ratings on Memphis, Tenn.-based AutoZone Inc. reflect our view that the company's profitability will remain strong and credit measures will remain near current levels, even under a scenario of modestly weaker industry demand. In our opinion, the company's satisfactory business risk profile reflects its solid position in the generally stable but highly competitive retail automotive parts
