» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 129 | NO. 2 | Friday, January 03, 2014

Moody's Upgrades AutoZone's Credit Rating

AP

Print | Front Page | Email this story | Comments ()

NEW YORK (AP) – Moody's Investors Service raised the credit rating of AutoZone Inc. by one notch on Thursday, saying that the auto-parts retailer is benefiting as drivers hang on to their cars longer.

Moody's boosted AutoZone's unsecured debt to "Baa1" from "Baa2" and assigned it a "stable" outlook, concluding a review that began on Dec. 16. "Baa1" is three notches above speculative-grade or "junk" status.

The ratings firm said it took into account AutoZone's "solid" financial measurements, which are being helped by the average age of vehicle and the number of miles driven. Its Duralast brand earns higher profit margins than competitors, Moody's said.

The company reported last month that first-quarter net income rose 7 percent to $218.1 million on a 5 percent increase in revenue.

AutoZone, based in Memphis, Tenn., also announced last month that it increased its stock-repurchase program by $750 million. Companies buy back their own stock to bolster the share price and improve earnings per share. Moody's said Thursday that although AutoZone "has an aggressive share repurchase program, its overall financial policy is balanced," and management keeps borrowing within a target range.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 87 87 14,804
MORTGAGES 80 80 19,410
FORECLOSURE NOTICES 22 22 3,817
BUILDING PERMITS 142 142 35,472
BANKRUPTCIES 62 62 14,096
BUSINESS LICENSES 62 62 5,053
UTILITY CONNECTIONS 99 99 21,532
MARRIAGE LICENSES 37 37 4,594

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.