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. 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. The ratings on Memphis-based AutoZone Inc. reflect Standard&Poor's Ratings Services' view of the company's "satisfactory" business risk profile, which incorporates AutoZone's good geographic diversification in the U.S. and its efficient distribution infrastructure, leading to above-peer profitability. The ratings also reflect our view of the company's solid positions in the generally stable but highly competitive retail automotive parts aftermarket industry, which remains sensitive to fuel price
