Fitch rates AutoZone notes BBB

Fitch Ratings said it assigned BBB ratings to AutoZone, Inc.'s $500 million 6½% senior unsecured notes due January 2014 and $250 million 7 1/8% senior unsecured notes due July 2018.

The outlook is stable.

Proceeds will be used for general corporate purposes, which include repaying, redeeming or repurchasing existing debt, repurchasing common stock and for working capital uses and capital expenditures.

Ratings reflect AutoZone's leading position in the retail auto parts and accessories aftermarket and its broad geographic reach, the agency said.

Ratings also consider the company's solid operating performance with an industry leading EBIT margin and strong free cash flow generation, Fitch said.

Leverage is about 2.5 times, the agency said.

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