Auto parts retailer AutoZone Inc. has adopted the Financial Accounting Standards Board's revised lease accounting standard, resulting in adjusted leverage increasing to 3.5x from 3.2x at Nov. 23, 2019. We are affirming our 'BBB' issuer-credit rating because the company's underlying creditworthiness is unchanged in our view. The outlook is stable. We have revised our downgrade leverage threshold to around 4x and our upgrade leverage threshold to around 3x. The stable outlook reflects our expectation that AutoZone will maintain its leading position in the retail segment of the aftermarket auto parts industry and execute on its efforts to expand its commercial business with no changes to its current financial policy. The rating affirmation reflects AutoZone's solid execution and consistent operating track
