The ratings on Memphis-based AutoZone Inc. reflect Standard&Poor's Ratings Services' view of the company's "satisfactory" business risk profile, which incorporates AutoZone's good geographic diversification in the U.S. and its efficient distribution infrastructure, leading to above-peer profitability. The ratings also reflect our view of the company's solid positions in the generally stable but highly competitive retail automotive parts aftermarket industry, which remains sensitive to fuel price changes. The company's "intermediate" financial risk profile reflects its adjusted leverage of around 2.6x-2.7x, and its stable and strong free cash flow generation of about $850 million a year, which is, however, fully absorbed by substantial share repurchase activity. AutoZone, with over 4,900 stores primarily in the U.S., is the nation's largest automotive
