New York, March 12, 2015 -- Moody's Investors Service today said that Dollar General Corporation's (Baa3/stable) announcement of the retirement of its CFO, David Tehle and its initiation of a quarterly cash dividend of 22 cents a share in addition to its share repurchase plan of $1.3 billion for 2015 will not have any impact of the company's ratings or outlook. Simultaneously the company also announced financial results for the fourth quarter and fiscal year ending January 30, 2015 which continued to demonstrate growth in same store sales and profitability. Moody's estimates the dividend to result in a cash outflow of about $275 million annually and it does not anticipate any material impact of the dividend on the company's credit metrics. The company also reiterated its intention to maintain a capital structure to maintain its investment grade rating and did not indicate any intention changing its financial policy which includes a 3.0 times lease adjusted debt to EBITDAR target and we expect leverage to remain in that range despite the new dividend policy.
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