The ratings on AutoZone Inc. were placed on CreditWatch with negative implications Sept. 26, 2001. The CreditWatch placement followed the company's announcement that it had increased its authorization for share repurchases by $250 million. As of the end of the fourth quarter of fiscal 2001, AutoZone had repurchased $1.37 billion of its previous $1.45 billion authorization. Standard&Poor's believes this additional authorization represents a continued more aggressive financial policy which could further pressure current ratings if the company increases debt levels. Previous share repurchases have contributed to EBITDA coverage of interest declining to about 6 times (x) in 2000 from more than 11x in 1998 and total debt to capital increasing to more than 63% in 2000 from 42%
