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

COLUMBIA (S&P Global Ratings) June 24, 2024--S&P Global Ratings today assigned its 'BBB' issue-level rating to Memphis, Tenn.-based AutoZone Inc.'s proposed senior unsecured notes. We expect the company will use the proceeds from these notes primarily to repay a portion of its outstanding commercial paper borrowings. The company reported $9 billion of funded debt outstanding as of the third fiscal quarter ended May 4, 2024, including roughly $1.8 billion of commercial paper. Our 'BBB' long-term issuer credit rating and stable outlook on AutoZone are unchanged. AutoZone's third-quarter fiscal 2024 results tracked in line with our expectations. Sales grew 3.5% during the quarter and S&P Global Ratings-adjusted EBITDA margin expanded 70 basis points (bps) because of better merchandising and distribution supporting

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