The ratings on Memphis, Tenn.-based AutoZone Inc. reflect the company's leading position in the stable but highly competitive retail automobile parts aftermarket, consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's historically aggressive share repurchase activity and expectations of continued flat-to-negative same-store sales performance resulting from difficult macroeconomic conditions. AutoZone is the largest retailer of automotive parts in the U.S., with about 4,032 stores domestically and in Puerto Rico, as well as 130 stores in Mexico. Consolidation in the industry has resulted in the top five players having about 30% market share. The pending acquisition of CSK Auto by O'Reilly Auto Parts will likely increase competition in the Western U.S. AutoZone's large size and geographic
