The ratings on Goodlettsville, Tenn.-based Dollar General Corp. reflect Standard&Poor's Ratings Services' expectation that the company's value-focused merchandising strategy and continued store expansion will sustain the positive operating momentum and contribute to further improvement in credit measures. We view Dollar General's business risk as fair based on its good market position as the largest dollar store chain in the U.S. with over 9,000 stores and good prospects for future growth, as well as improved merchandising and operating efficiencies. Given the company's extreme value proposition, we believe Dollar General has benefited from consumers trading down given the current weak economic conditions. In addition, recent restructuring initiatives--including improved merchandising and better operating efficiency--have contributed to better sales and earnings. Still,
