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

SAN FRANCISCO (S&P Global Ratings) Aug. 4, 2020--S&P Global Ratings today assigned its 'BBB' issue-level rating to Memphis, Tenn.-based aftermarket auto parts retailer AutoZone Inc.'s proposed senior unsecured notes. The company will use a portion of the net proceeds to refinance its $500 million 4% senior notes due November 2020. It will use the remainder for general corporate purposes, which could include repaying debt, working capital needs, capital expenditures, or share repurchases. Although cash balances have grown since AutoZone bolstered liquidity during the emerging stages of the COVID-19 pandemic, we expect the company will eventually return excess balances to its shareholders through buybacks as opposed to reducing debt. AutoZone's same-store sales contracted 1% for the quarter ended May 9, 2020,

...August 4, 2020 SAN FRANCISCO (S&P Global Ratings) Aug. 4, 2020--S&P Global Ratings today assigned its '###' issue-level rating to Memphis, Tenn.-based aftermarket auto parts retailer AutoZone Inc.'s proposed senior unsecured notes. The company will use a portion of the net proceeds to refinance its $500 million 4% senior notes due November 2020. It will use the remainder for general corporate purposes, which could include repaying debt, working capital needs, capital expenditures, or share repurchases. Although cash balances have grown since AutoZone bolstered liquidity during the emerging stages of the COVID-19 pandemic, we expect the company will eventually return excess balances to its shareholders through buybacks as opposed to reducing debt. AutoZone's same-store sales contracted 1% for the quarter ended May 9, 2020, as pandemic-related disruptions affected operating results. Government stimulus checks provided a strong boost to sales toward the end of the quarter, and we think a second...

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