The ratings on AutoZone Inc. reflect the company's solid position in the generally stable but highly competitive retail automotive parts aftermarket industry, consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's aggressive share repurchase activity, sensitivity to fuel cost increases, and historically weak Do-It-Yourself (DIY) organic growth performance, which could re-emerge over time. AutoZone, with over 4,300 stores in the U.S. and 200 in Mexico, is the no. 1 company in the highly competitive, fragmented retail automotive aftermarket parts industry. In addition to over 36,000 retail auto part stores industry-wide--including stores operated by AutoZone, Advance Auto Parts Inc. (BBB-/Stable/--), O'Reilly Automotive Inc. (unrated), and The Pep Boys-Manny, Moe and Jack Inc. (B-/Positive/--)--the company faces intense
