Fitch switches DPL view to stable

Fitch Ratings said it changed its outlook for DPL Inc. and Dayton Power and Light Co. (AES Ohio) to stable from negative affirming their BB and BBB- respective ratings.

The Public Utility Commission of Ohio approved AES Ohio's distribution rate case last week Key parameters of the order are constructive although rates will not take effect until a new electric security plan is approved, the agency said.

“The rating affirmation and outlook reflect Fitch's expectations that FFO leverage will improve to below DPL's downgrade sensitivity of 8.3x by 2025. The credit metric incorporates Fitch's estimate that capex will increase materially in the next two to three years. AES Ohio will continue to be well positioned for its ratings but is upward constrained by the DPL ownership,” the agency said in a press release.

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