Leading competitive position in retail auto parts aftermarket industry based on revenues and store count; Large, diverse store footprint and efficient distribution infrastructure;and Consistent and higher operating margins compared with industry peers. Strong and stable cash flow generation; Aggressive financial policy as majority of the free cash flows is used for share repurchases; and Stable credit metrics despite increased borrowings to fund a portion of share repurchases due to growing cash flow. The stable rating outlook on AutoZone Inc. reflects our expectation for continued healthy sales growth and cash flow generation. We believe the company will maintain its financial policy and credit ratios will not change materially, with total debt to EBITDA in the low-3x area despite substantial share repurchases.
