Fitch: DPL view positive

Fitch Ratings said it affirmed DPL Inc.'s issuer default rating and senior unsecured debt at BBB+ and its short-term issuer default rating at F2. Also affirmed were Dayton Power & Light Co.'s A- issuer default rating and preferred stock, its A+ secured pollution control revenue bonds and first mortgage bonds and its F1 short-term issuer default rating.

The outlook was revised to positive from stable.

The agency said the ratings reflect Dayton Power & Light's relatively low risk profile and continued improvement in DPL's financial metrics. The ratings also consider debt reduction at the parent company, strong utility cash flows, declining capital expenditures, a conservative utility capital structure and adequate liquidity at both the parent company and utility level under Fitch's moderate stress scenarios.

The positive outlook reflects Fitch's expectation that the utility will become free cash flow positive in 2008 following the implementation of the bulk of Dayton Power & Light's environmental programs, which allow the company to burn cheaper, higher sulfur coal to generate its power needs while reducing emissions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.