The ratings on Memphis-based AutoZone Inc. reflect Standard&Poor's Ratings Services' view of the company's "satisfactory" business risk profile, which incorporates AutoZone's good geographic diversification in the U.S., its efficient distribution infrastructure, strong profitability, and leading industry position. We also view the company's financial risk profile as "intermediate," which incorporates our expectation that the company will maintain very stable credit ratios over the next two years with adjusted leverage of about 2.6x-2.7x. We expect it to use its stable and strong free cash flow generation for substantial share repurchase activity. We believe AutoZone, the nation's largest automotive aftermarket parts retailer, has a strong low-teen market share in the Do-It-Yourself (DIY) segment of the industry, and has grown its share
