Strong competitive position in retail auto parts aftermarket; Large, diverse store footprint and efficient distribution infrastructure; Strong operating margins compared with industry peers. Strong and stable cash flow generation; and Majority of the free cash flows are used for share repurchases; and Share repurchases in excess of free cash flow, financed with debt. The stable rating outlook on AutoZone Inc. reflects our expectation for continued healthy sales growth and cash flow generation. It also reflects our understanding that the company will maintain its financial policy and credit ratios will not change materially. We would consider a lower rating if the company increased and maintained debt leverage of 3.5x or higher which would correlate to funds from operations (FFO) to debt
