S&P rates O'Reilly notes BBB-

Standard & Poor's said it assigned a BBB- senior debt rating to O'Reilly Automotive Inc.'s (BBB-/stable) proposed $300 million senior unsecured notes due 2021.

Proceeds will be used for general corporate purposes, including share repurchases.

The debt offering is consistent with O'Reilly's plan to reach its 2.00x to 2.25x target leverage metric over time, according to the agency. Pro forma for the proposed debt offering, adjusted leverage is about 1.8x, compared with 1.5x as of the 12 months ended June 30.

O'Reilly's ratings reflect the view that the company's profitability will remain satisfactory and credit measures will be solid for the rating category, even though profitability at the acquired CSK Automotive Corp. stores still probably meaningfully trails profits at the legacy O'Reilly stores, the agency said.

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 the company's history of satisfactory growth and profitability demonstrates, the agency noted.

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