Moody’s changes Dollar General view

Moody's Ratings said it changed Dollar General Corp.'s outlook to negative from stable.

At the same time, Moody's affirmed Dollar General's Baa2 senior unsecured notes ratings and Prime-2 commercial paper rating.

“The change in outlook to negative reflects Moody's view that Dollar General's ability to improve earnings and strengthen credit metrics over the next 12 to 18 months will be difficult as it addresses operational issues during a period when consumer spending is constrained and inflationary pressures persist,” the agency said in a news release.

The agency said it expects that in order for Dollar General to improve its credit metrics back in line with its lease adjusted leverage target of 3.0x will also require debt reduction in addition to earnings improvement.

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