Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable

Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable
Published Mar 08, 2018
9 pages (3242 words) — Published Mar 08, 2018
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We believe discount dollar store retailer Dollar Tree Inc.'s operating strategies and debt repayment will contribute to stable margins and improving credit metrics, despite competitive pressures and potential for sales volatility given continued Family Dollar integration efforts. The company has demonstrated a commitment to a conservative financial policy, most recently with the repayment of $750 million of unsecured notes on March 1, and credit measures have improved considerably, including debt to EBITDA trending to less than 3x. We are raising our ratings on Dollar Tree, including our corporate credit rating, to 'BBB-' from 'BB+'. The stable outlook reflects our view that credit metrics will remain below 3x and cash flow generation will remain healthy. We also expect company performance will

  
Brief Excerpt:

...+ We believe discount dollar store retailer Dollar Tree Inc.'s operating strategies and debt repayment will contribute to stable margins and improving credit metrics, despite competitive pressures and potential for sales volatility given continued Family Dollar integration efforts. + The company has demonstrated a commitment to a conservative financial policy, most recently with the repayment of $750 million of unsecured notes on March 1, and credit measures have improved considerably, including debt to EBITDA trending to less than 3x. + We are raising our ratings on Dollar Tree, including our corporate credit rating, to '###-' from '##+'. + The stable outlook reflects our view that credit metrics will remain below 3x and cash flow generation will remain healthy. We also expect company performance will remain positive with ongoing expansion, that should further strengthen Dollar Tree's competitive position in the discount space....

  
Report Type:

Research Update

Issuer
GICS
General Merchandise Stores (25503020)
Sector
Global Issuers
Country
Region
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable" Mar 08, 2018. Alacra Store. May 09, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dollar-Tree-Inc-Upgraded-To-BBB-From-BB-On-Expectations-Of-Continued-Credit-Metric-Improvement-Outlook-Stable-2003691>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Dollar Tree Inc. Upgraded To 'BBB-' From 'BB+' On Expectations Of Continued Credit Metric Improvement; Outlook Stable Mar 08, 2018. New York, NY: Alacra Store. Retrieved May 09, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dollar-Tree-Inc-Upgraded-To-BBB-From-BB-On-Expectations-Of-Continued-Credit-Metric-Improvement-Outlook-Stable-2003691>
  
US$ 225.00
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