Good competitive position as the largest operator in retail auto parts aftermarket industry based on revenues and store count, but we think online competition is a risk; 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 as the company continues to manage share repurchases and its target leverage. S&P Global Ratings' stable rating outlook on AutoZone Inc. reflects our expectation for relatively steady credit metrics, with adjusted debt-to-EBITDA around 3x and adjusted funds from operations (FFO) to debt around 22%. We believe the company will maintain
