Moody's may up Dollar General

Moody's Investors Service said it placed Dollar General Corp.'s Ba3 corporate family and probability of default ratings, Ba2 (LGD 3, 31%) $1.451 billion senior secured term loan B1 due 2014, Ba3 (LGD 4, 55%) $512 million senior secured term loan B due 2014 and B2 (LGD 6, 93%) $451 million of senior subordinated notes due 2017 on review for possible upgrade.

The B1 (LGD 5, 76%) rating on Dollar General's $839 million of 10 5/8% senior unsecured notes due 2015 was affirmed. Dollar General has an SGL-1 speculative-grade liquidity rating.

The review for possible upgrade reflects Dollar General's announcement that it intends to redeem its $839 million of senior unsecured notes due on their first call date in July, a portion of which will is expected to be funded from the company's existing cash balance, the agency said.

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