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

SAN FRANCISCO (S&P Global Ratings) March 26, 2020--S&P Global Ratings today assigned its 'BBB' issue-level rating to the proposed senior unsecured notes of Memphis, TN-based AutoZone Inc. (BBB/Stable/A-2). We expect the company will use the net proceeds for general corporate purposes, including to repay outstanding commercial paper and drawings on its revolving credit facility. AutoZone had approximately $5.5 billion of debt outstanding as of Feb. 15, 2020. Our 'BBB' issuer credit rating on AutoZone reflects its position as the market share leader in the do-it-yourself segment of the aftermarket auto parts industry, providing it with significant scale and bargaining power. It also reflects the company's good cash flow generation and consistent financial policy. We expect AutoZone's operating results will be

...March 26, 2020 SAN FRANCISCO (S&P Global Ratings) March 26, 2020--S&P Global Ratings today assigned its '###' issue-level rating to the proposed senior unsecured notes of Memphis, TN-based AutoZone Inc. (###/Stable/A-2). We expect the company will use the net proceeds for general corporate purposes, including to repay outstanding commercial paper and drawings on its revolving credit facility. AutoZone had approximately $5.5 billion of debt outstanding as of Feb. 15, 2020. Our '###' issuer credit rating on AutoZone reflects its position as the market share leader in the do-it-yourself segment of the aftermarket auto parts industry, providing it with significant scale and bargaining power. It also reflects the company's good cash flow generation and consistent financial policy. We expect AutoZone's operating results will be pressured over the near term as the spread of the coronavirus weighs on customer traffic and sales volumes. We believe increasing layoffs and social distancing measures...

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