Good market position in "extreme value" retail segment; Good operating performance due to management initiatives; and Consumers trading down. Intensely competitive industry; Leveraged capital structure; and Aggressive growth plans. The ratings on Goodlettsville, Tenn.-based Dollar General Corp. reflect its leveraged capital structure, participation in the highly competitive discount retail environment, and aggressive growth plans. The company's fair business profile that benefits from a good market position and prospects for future growth slightly offset these factors. Dollar General's extreme value proposition, has led us to believe it is benefiting from consumers trading down in the current weak economic conditions. In addition, restructuring initiatives in recent years--including improved merchandising and better operating efficiency--have contributed to better sales and earnings. Still, Standard&
