The ratings on Goodlettsville, Tenn.-based Dollar General are based on its good business position, partially offset by concerns about financial and operating controls associated with an aggressive expansion program. Standard&Poor's concerns include the company's recent restatement of financial results, reduced financial flexibility, and the challenges management faces in improving its financial and operating controls while growing rapidly within a highly competitive industry. Dollar General restated financials for fiscal years 1998, 1999, and 2000, in its Form 10-K for the fiscal year ended Feb. 2, 2001, filed on Jan. 14, 2002. Several categories of expenses were involved in the restatement, the largest of which were the reclassification of operating leases to capital leases and several components of SG&A. Although
