The ratings on Dollar General reflect our 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 satisfactory, 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 and the currently weak economy, we believe Dollar General has benefited from consumers trading down. In addition, restructuring initiatives in recent years--including improved merchandising and better operating efficiency--have contributed to better sales and earnings. Still, Dollar General operates in the highly competitive
