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 repurchase 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 re-emerge. Standard&Poor's Ratings Services' ratings on Memphis-based AutoZone Inc. reflect our view that the company's profitability will remain strong and credit measures will stay 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 aftermarket industry and
