Good competitive position as the largest operator in retail auto parts aftermarket industry based on revenues and store count; Large, diverse store footprint and efficient distribution infrastructure; Consistent and higher operating margins compared with industry peers; and Weak industry trends that we expect to be temporary, with online competition a longer-term risk. 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 weak industry trends as the company manage share repurchases to maintain its target leverage. S&P Global Ratings' stable rating outlook on AutoZone Inc. reflects our expectation for relatively steady credit metrics despite slower growth. We believe the company will maintain its financial
