On November 29, 2006, Standard&Poor's Ratings Services revised its outlook on discount retailer Dollar General Corp. to negative from stable. At the same time, we affirmed the 'BBB-' corporate credit and senior unsecured debt ratings on the company. The outlook revision is based on Standard&Poor's expectation that Dollar General's recently announced store closures and elimination of the company's "packaway" inventory management model will result in depressed margins through fiscal 2007 due to higher markdowns during the transition period and store closure costs estimated at about $74 million, including $53 million in cash charges. The ratings on Goodlettsville, Tenn.-based Dollar General reflect its solid position in the "extreme value" U.S. retail segment, and good cash flow protection
