The rating on Goodlettsville, Tenn.-based Dollar General Corp. reflects a highly competitive discount retail environment and risks associated with the company's aggressive expansion program. These factors are somewhat mitigated by a good market position and satisfactory cash flow protection. The rating is also supported by the preliminary resolution of an SEC investigation into accounting changes. During the fourth quarter of 2003, Dollar General reached an agreement in principle with the SEC to settle the investigation for $10 million. The agreement is subject to approval by the SEC and the court in which the SEC complaint is filed. The investigation stemmed from the company's restatement of financial results for fiscals 1998, 1999, and 2000. Although the restatement did not materially affect
