S&P: Advance Auto notes BBB-

Standard & Poor's said it assigned a BBB- senior unsecured debt rating to Advance Auto Parts Inc.'s proposed $300 million 10-year senior unsecured notes.

The agency said it expects the company to issue the proposed notes under the Rule 415 shelf registration statement it filed in April 2010.

The proceeds are expected to repay indebtedness under its revolving credit facility of about $300 million drawn as of Oct. 8, 2011, which it incurred in 2011 primarily for share repurchases, the agency said.

The company's BBB- corporate credit rating and all other ratings remain unchanged.

The outlook is stable.

The ratings reflect the company's good profitability and its No. 2 position in the historically stable retail auto parts industry, especially its participation in the higher-growth commercial delivery business, S&P said.

The highly competitive environment, meaningfully lower profitability compared with the industry leader, exposure to fuel-cost increases and higher share repurchase activity all temper these strengths, the agency said.

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