Solid, stable regulated utility operations and cash flows; Focus on core utility operations and continued debt reduction; and Meaningful progress on environmental upgrades. High debt leverage; Increased capital expenditure needs through 2009; and Uncertainty as to how the regulatory environment will evolve in Ohio. The ratings on Dayton, Ohio-based DPL Inc. reflect falling business risk centered on DPL's core electric utility operations at subsidiary Dayton Power&Light Co. (DP&L) and the prospect for continued improvement in the consolidated financial profile. The ratings are founded on DP&L's regulated operations, which provide a significant amount of consolidated operating income and have a sound business profile characterized by modest population growth, low-cost generating plants, constructive regulation, and a diverse area economy with
