Moody's rates DPL notes Ba3

Moody's Investors Service said it affirmed the Ba3 senior long-term debt rating of DPL Inc. and assigned a Ba3 rating to its proposed up to $200 million senior fixed-rate notes due 2019. The outlook is stable.

The note proceeds, cash on hand and/or the proceeds of other short-term borrowings will be used to finance the company’s tender offer for up to $280 million of its outstanding 6˝% senior notes due 2016.

The agency said DPL's Ba3 rating reflects the structural subordination relative to the senior issuer rating at its key subsidiary, Dayton Power and Light Co. (Baa3/stable), and the expected increase after 2016 in the group's exposure to non-regulated operations with the addition of the power generation assets of Dayton Power and Light to DPL's retail activities.

DPL's Ba3 rating also reflects that the Public Utilities Commission of Ohio did not impose any restrictions on Dayton Power and Light's ability to upstream cash flows, a credit positive for DPL, Moody’s said.

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