On March 12, 2007, Standard&Poor's Ratings Services it lowered the corporate credit and senior unsecured ratings on discount retailer Dollar General Corp. to 'BB+' from 'BBB-' and placed the ratings on CreditWatch with negative implications. These actions follow Goodlettsville, Tenn.-based Dollar General's announcement that it has entered into an agreement to be acquired by affiliates of Kohlberg Kravis Roberts&Co. L.P. ("KKR"). Although Dollar General has a solid investment-grade business risk profile, the proposed transaction, totaling about $7.3 billion including approximately $380 million of net debt, is expected to leave Dollar General with a highly leveraged capital structure. As a result, if the transaction proceeds, ratings are likely to fall into the single 'B' category. We will
