S&P lifts DPL from junk

Standard & Poor's said it raised its corporate credit ratings on DPL Inc. and its regulated subsidiary, Dayton Power & Light Co., to BBB from BB+.

The agency said it also raised its ratings two notches on all the debt ratings of both entities, except for the rating on DP&L's first mortgage bonds, which were raised one notch to BBB+ due to more stringent guidelines for secured debt ratings for investment-grade companies.

The outlook is stable.

According to S&P, the rating action incorporates the prospect for continued improvement in the consolidated financial profile with further debt reduction and greater utility cash flow.

Falling business risk, centered on DPL's core electric utility operations and receding concerns about the company's corporate governance also led to the higher ratings, the agency said.

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