Fitch downgrades DPL

Fitch Ratings said it downgraded DPL Inc.’s long-term issuer default rating to BB from BB+. Fitch also affirmed Dayton Power and Light’s long-term IDR at BBB-. The outlooks for both are negative.

“Fitch expects DPL’s FFO-adjusted leverage to exceed 7.5x for three years, longer than expected. Additionally, DPL’s covenants under the revolver are likely to be breached in 2020. The negative outlooks can be stabilized if DPL renegotiates the covenants and receives reasonable orders from several regulatory proceedings. DP&L’s ratings are upward constrained as DPL relies on DP&L for debt service,” said Fitch in a press release.

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