Moody's rates O'Reilly Automotive notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to O'Reilly Automotive Inc.'s planned issuance of $500 million of senior debt.

The outlook is stable.

Proceeds will be used to repay about $356 million in outstanding borrowings under its $1.075 billion asset-backed loan revolver.

The Baa3 rating reflects the company's very strong credit metrics, healthy operating performance and good liquidity, Moody's said.

The rating reflects the company's solid market position in the auto parts retail segment, its well-diversified geographic footprint and its favorable do-it yourself / do-it-for-me revenue mix, according to the agency.

The rating is also supported by the company's sophisticated distribution infrastructure and product expertise, honed through years of operation, the agency added.

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