Moody's: O'Reilly unchanged

Moody's Investors Service said that O'Reilly Automotive Inc.'s announcement that its board of directors had approved a new $500 million share repurchase program would have no impact on either the Baa3 senior rating or the stable outlook.

The original rating issued in January anticipated that O'Reilly would continue to opportunistically and prudently repurchase shares as a mechanism of returning cash to shareholders, and the new $500 million program is well within the band of tolerance at the Baa3 rating, the agency said.

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

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