The corporate credit rating for DPL reflects the financial and business risk profile of the consolidated enterprise, including its utility subsidiary Dayton Power&Light Co. (DP&L). DPL's stated objective is to remain a stand-alone company, with the intent to emphasize its regulated transmission and distribution operations and nonregulated power generation. Consolidated credit quality reflects lower cash flow coverage measures; high consolidated debt leverage; and decreased wholesale power-pricing expectations on peaking power plant investments, as well as DPL's expectations for a degree of economic recovery. DPL's cash flow potential has been adversely affected by weaker wholesale energy prices in the East Coast Area Reliability (ECAR) region. Therefore, DPL's debt-financed expansion of nonregulated peaking plants has not produced the level of
