On Sept. 13, 2006, Standard&Poor's Ratings Services revised its outlook on discount retailer Dollar General Corp. to stable from positive. At the same time, we affirmed the 'BBB-' corporate credit and senior unsecured debt ratings on the company. The outlook revision is based on a continued decline in business performance caused largely by swollen inventory--up nearly 19% from a year ago. EBITDA for the second quarter fell 22% year-over-year, to $129 million. Credit measures, which still remain satisfactory, are no longer expected to improve. The ratings on Goodlettsville, Tenn.-based Dollar General reflect its solid position in the "extreme value" U.S. retail segment, a relatively consistent long-term record of profitability, and good cash flow protection measures. Tempering factors include
