U.S. discount retailer Dollar General continues to achieve solid operating results and intends to redeem $839 million currently outstanding under its senior notes on or following the first scheduled call date in July 2011. We are placing all ratings, including the 'BB' corporate credit rating, on CreditWatch with positive implications based on continued cash flow expansion and higher-than-expected debt reduction, which is likely to result in debt leverage of about 2.7x in fiscal 2011. On June 17, 2011, Standard&Poor's Ratings Services placed all of its ratings on Dollar General Corp., including the 'BB' corporate credit rating, on CreditWatch with positive implications. The ratings on Dollar General reflect our expectation that the company's value-focused merchandising strategy and continued store
