On July 24, 2008, Standard&Poor's Ratings Services revised its outlook on Goodlettsville, Tenn.-based Dollar General Corp. to stable from negative. We affirmed all ratings on the company, including the 'B' corporate credit rating. The outlook revision reflects Dollar General's improved operating performance over the past several quarters due to success from its turnaround strategies involving real estate pruning and improved merchandising from the elimination of its "packaway" inventory strategy. Credit protection measures have strengthened from very weak levels, with total debt to EBITDA declining to about 7.0x for the 12 months ended May 2 2008, from over 8x following the completion of the LBO. The ratings on Dollar General reflect its highly leveraged capital structure, thin cash flow
