Summary: Dollar General Corp.

Strong market position as one of the largest dollar-store chains in the U.S. Good unit-level returns support plans to open 900 new stores in 2018, although growth likely peaked in 2017 when 1,315 new stores opened. Elevated competition from ongoing rapid expansion from peers and growing presence of European hard-discount grocers. Consistent and solid cash flow generation. Increased capital spending over the next year to support new store openings, remodels, and distribution center expansion. Strong liquidity, though limited asset protection as the company leases most of its stores. Leverage maintained in the mid-2x area despite accelerated shareholder returns funded with U.S. tax reform benefits. The stable outlook on Dollar General Corp. reflects S&P Global Ratings' expectation that the company will

...Business Risk: Satisfactory Financial Risk: Intermediate + Strong market position as one of the largest dollar-store chains in the U.S. + Good unit-level returns support plans to open 900 new stores in 2018, although growth likely peaked in 2017 when 1,315 new stores opened. + Elevated competition from ongoing rapid expansion from peers and growing presence of European hard-discount grocers. + Consistent and solid cash flow generation. + Increased capital spending over the next year to support new store openings, remodels, and distribution center expansion. + Strong liquidity, though limited asset protection as the company leases most of its stores. + Leverage maintained in the mid-2x area despite accelerated shareholder returns funded with U.S. tax reform benefits....

Summary