The ratings on AutoZone Inc. reflect the company's leading position in the generally stable but highly competitive retail automotive parts aftermarket (the outlook for which has improved), consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's aggressive share repurchase activity, declining traffic volume trends, sensitivity to fuel cost increases, and historically weak Do-It-Yourself (DIY) growth prospects. AutoZone, with about 4,172 stores domestically and 168 in Mexico, is the leading company in the highly competitive, fragmented retail automotive aftermarket parts industry. In addition to over 36,000 retail auto part stores industrywide (including stores operated by AutoZone, Advance Auto Parts Inc. [BB+/Negative/--], O'Reilly Automotive Inc. [unrated], and The Pep Boys-Manny, Moe and Jack Inc. [B-/Negative/--]), the company
