S&P rates O'Reilly Automotive notes BBB-

Standard & Poor's said it assigned a preliminary BBB- corporate credit rating to O'Reilly Automotive Inc. and a preliminary BBB- rating to its proposed $500 million 10-year senior notes.

The outlook is stable.

"Our preliminary ratings on O'Reilly reflect our view that the company's profitability will remain satisfactory and credit measures will be solid for the rating category, despite our view that meaningful performance improvement at the legacy CSK Automotive Corp. stores will only occur over several years," S&P analyst Jerry Phelan said in a statement.

The company has a satisfactory business risk profile as the third-largest competitor in the generally stable retail automotive parts industry and a good operational management team as demonstrated by its history of satisfactory growth and profitability, the agency said.

Risk factors include the intensely competitive environment, industry sensitivity to fuel prices, the potential for weakness if industry demand softens considerably and the view that financial policy could become more aggressive, the agency noted.

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