S&P puts Dollar General on positive watch

Standard & Poor's said it placed its ratings, including the B+ corporate credit rating, on Dollar General Corp. on CreditWatch with positive implications due to the company's plans to sell $750 million in common stock and to use some of the proceeds to repurchase a mix of its existing subordinated and senior unsecured notes.

The agency said that if the transactions are completed, it expects debt reduction along with improvement in cash flow to result in a meaningful decrease in debt leverage, with the total debt-to-EBITDA ratio declining toward the low 4 times level from about 5 times.

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