Standard&Poor's said today that AutoZone Inc.'s (BBB+/Negative/A-2) authorization of an additional $300 million share repurchase has no immediate impact on the company's credit rating or outlook. This increase brings AutoZone's total share repurchase authorization to $2.3 billion, of which nearly all of the $2 billion in previous authorizations has been completed. AutoZone has improved EBITDA coverage of interest and generated significant free cash flow through the first nine months of fiscal 2002. The rating incorporates Standard&Poor's assumption that AutoZone will continue to repurchase stock primarily from its free cash flow.
