Good position in "extreme value" retailing segment Good track record of profitability Satisfactory cash flow protection Intensely competitive industry Aggressive expansion Inconsistent store-level execution Weak management information systems The ratings on Goodlettsville, Tenn.-based Dollar General reflect a highly competitive discount retail environment and risks associated with an aggressive expansion program, somewhat mitigated by a good market position and satisfactory cash flow protection. The rating is also supported by the preliminary resolution of an SEC investigation into accounting changes. During the fourth quarter of 2003, Dollar General reached an agreement in principle with the SEC to settle the investigation for $10 million. The agreement is subject to approval by the SEC and the court in which the SEC complaint is filed.
