Moody's gives AutoZone notes Baa2

Moody's Investors Service said it assigned a provisional Baa2 senior unsecured rating and provisional Baa3 subordinated rating to AutoZone, Inc.'s multi-seniority shelf registration, and a Baa2 rating to the company's new $500 million senior unsecured notes.

The company's Baa2 long-term and Prime-2 commercial paper ratings were affirmed, the agency said.

The outlook is stable.

Moody's noted that proceeds from the new $500 million senior unsecured notes will be used to repay $500 million of upcoming scheduled debt maturities through calendar 2010, which Moody's views as a positive as it eliminates a potential liquidity concern.

"With this new debt issuance, AutoZone has removed one hurdle from its debt refinancings. Once the $1 billion revolver, which expires in May 2010 is addressed, Autozone will have significantly improved its liquidity profile," stated Moody's senior analyst Charlie O'Shea.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.