High debt leverage, Weak cash flow credit protection measures, and Increased capital expenditures for environmental needs through 2005-2009. Solid, stable regulated utility operations and cash flows, and Intent to continue to reduce debt and primarily focus on core utility operations in 2005. The rating on DPL Inc. reflects the company's high debt leverage, weak cash flow coverage measures, adequate liquidity, and its average business risk profile of the consolidated enterprise, including its utility subsidiary, Dayton Power&Light Co. (DP&L), as well as its nonregulated peaking plants and remaining interest in its investment portfolio. 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 and the
