On Dec. 5, 2007, Standard&Poor's Ratings Services revised the outlook for AutoZone Inc. to negative from stable. This action reflects the company's weaker credit metrics and more aggressive financial policy, in conjunction with our recent revision in the company's business risk profile to Satisfactory from Strong. At the same time, we affirmed AutoZone's 'BBB+' corporate credit, 'A-2' CP, and other ratings. The ratings on Memphis, Tenn.-based AutoZone reflect the company's leading position in the stable but highly competitive retail automobile parts aftermarket, consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's historically aggressive share repurchase activity and flat-to-slightly negative same-store sales growth over the past four years. AutoZone is the largest retailer of
