The ratings on Dollar General Corp. reflect its highly leveraged capital structure, thin cash flow protection measures, and participation in the highly competitive discount retail environment. Due to its extreme value proposition, Standard&Poor's Ratings Services believes Dollar General is benefiting from consumers trading down in a harsh economic environment. In addition, restructuring initiatives in recent years, including improved merchandising and better operating efficiency, have contributed to better sales and earnings. Still, we anticipate the U.S. retailing landscape remaining very difficult and reduced discretionary spending could pressure sales and earnings despite Dollar General's value proposition. Dollar General reported better-than-expected operating results for the fiscal year ended Jan. 30, 2009, and we expect the positive operating momentum to continue for
