Good market position in "extreme value" retail segment Positive results from new management operational turnaround strategies Intensely competitive industry High debt leverage More aggressive growth plans The ratings on Dollar General Corp. reflect its leveraged capital structure, thin cash flow protection measures, participation in the highly competitive discount retail environment, and aggressive growth plans. Due to Dollar General's extreme value proposition, Standard&Poor's Ratings Services believes that the company is benefiting from consumers trading down in harsh economic conditions. In addition, restructuring initiatives in recent years, including improved merchandising and better operating efficiency, have contributed to better sales and earnings. Still, we expect the U.S. retailing landscape to remain difficult and reduced discretionary spending to stress sales and earnings
