Moody’s upgrades Dollar Tree

Moody's Investors Service said it upgraded Dollar Tree Inc.'s senior unsecured rating to Baa3 from Ba2.

The agency also upgraded the rating of the company's senior secured bank credit facilities and Family Dollar Stores, Inc. legacy notes to Baa2 from Baa3.

Additionally, Moody's withdrew the company's Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

The outlook is stable.

"Dollar Tree's strong operating performance and cash flow generation coupled with debt prepayments demonstrates that the integration of Family Dollar stores is continuing as planned and we expect the company's positive operating trends to continue," Moody's vice president Mickey Chadha said in a news release.

"We also anticipate that the company will refinance its secured bank credit facilities in the near term with the refinancing being consistent with an investment grade unsecured capital structure."

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