Standard&Poor's Ratings Services' ratings on Memphis, Tenn.-based AutoZone Inc. reflect our view that the company's profitability will remain strong and credit measures will remain near current levels, even under a scenario of modestly weaker industry demand. In our opinion, the company's satisfactory business risk profile reflects its solid position in the generally stable but highly competitive retail automotive parts aftermarket industry and consistent operating performance. These strengths are somewhat tempered by the company's intermediate financial risk profile, which is largely a result of management's aggressive share repurchase activity, industry sensitivity to fuel cost increases, and historically weak Do-It-Yourself (DIY) organic growth, which could re-emerge over time. AutoZone, with over 4,725 stores existing primarily in the U.S., is the
