The ratings on Goodlettsville, Tenn.-based Dollar General Corp. reflect its leveraged capital structure, participation in the highly competitive discount retail environment, and aggressive growth plans. The company's fair business profile that benefits from a good market position and prospects for future growth slightly offset these factors. Dollar General's extreme value proposition, has led us to believe it is benefiting from consumers trading down in the current weak economic conditions. In addition, restructuring initiatives in recent years--including improved merchandising and better operating efficiency--have contributed to better sales and earnings. Still, Standard&Poor's Ratings Services expects a slow recovery in the U.S. economy due to continuing high unemployment and reduced discretionary spending, which could stress sales and earnings despite Dollar General's
