On Dec. 10, 2003, Standard&Poor's Ratings Services lowered its corporate credit ratings on DPL Inc. and its regulated subsidiary, Dayton Power&Light Co. (DP&L), to 'BB' from 'BBB'. The downgrade follows Standard&Poor's reassessment of risks associated with DPL's investment portfolio and management's apparent high risk tolerance, weak corporate governance, and the continuing delay and challenges with respect to DPL's ability to reduce its significant high debt levels. At the same time, Standard&Poor's lowered all of its ratings on DPL and DP&L. Standard&Poor's lowered its rating on DP&L's first mortgage bonds to 'BBB-' from 'BBB'. The company's first mortgage bonds are rated two notches higher than the corporate credit rating because Standard
