AutoZone Inc.'s Proposed Senior Unsecured Notes Rated 'BBB'

NEW YORK (S&P Global Ratings) April 6, 2017--S&P Global Ratings said today it assigned its 'BBB' issue-level rating to auto parts retailer AutoZone Inc.'s proposed senior unsecured notes. AutoZone plans to use the net proceeds from the debt issuance for general corporate purposes, which includes repaying existing debt including commercial paper borrowings, for working capital, capital expenditures, new store openings, and share repurchases. The ratings on Memphis-based AutoZone, including the 'BBB' corporate credit rating and the stable rating outlook, reflect the company's position as the largest aftermarket retailer in the U.S., with good brand name recognition and a large diverse geographic footprint. The company has a strong market position in the retail do-it-yourself market, and continues to grow its share

...NEW YORK (S&P Global Ratings) April 6, 2017--S&P Global Ratings said today it assigned its '###' issue-level rating to auto parts retailer AutoZone Inc.'s proposed senior unsecured notes. AutoZone plans to use the net proceeds from the debt issuance for general corporate purposes, which includes repaying existing debt including commercial paper borrowings, for working capital, capital expenditures, new store openings, and share repurchases. The ratings on Memphis-based AutoZone, including the '###' corporate credit rating and the stable rating outlook, reflect the company's position as the largest aftermarket retailer in the U.S., with good brand name recognition and a large diverse geographic footprint. The company has a strong market position in the retail do-it-yourself market, and continues to grow its share in the fragmented commercial do-it-for-me business. We expect the company to maintain debt leverage (including accounts payable adjustments) in the 3.0x area and funds from operations...

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