S&P affirms Advance Auto on news of acquisition

Standard & Poor's said it affirmed Advance Auto Parts Inc.'s BBB- corporate credit rating and the rest of its ratings.

This action comes after the company signed a definitive agreement to purchase General Parts International Inc. for about $2 billion.

S&P said it expects the transaction to be financed with $ 1.4 billion of additional debt. The remainder of the deal is expected to be funded by Advance's excess cash, the agency said.

"We believe the acquisition enhances Advance's market position, geographic footprint and business diversity," Charles Pinson-Rose, an S&P analyst, said in a press release.

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