Discount retailer Dollar Tree Inc. is acquiring Family Dollar Stores Inc. and will be issuing nearly $8.5 billion of debt to fund this transaction. Family Dollar shareholders approved the acquisition of the company by Dollar Tree. We are assigning a 'BB' corporate credit rating with a stable outlook to Dollar Tree. At the same time, we are assigning 'BB+' issue-level ratings to the company's proposed senior secured credit facilities, with a '2' recovery rating. We are also assigning a 'B+' issue-level rating to the $2.5 billion senior unsecured notes, with a '6' recovery rating. The stable outlook incorporates our expectation that modest synergies and operational enhancement to Family Dollar's underperforming store base could help offset potential integration risks, the aggressive
