Research Update: DPL Inc. And AES Ohio Outlooks Revised To Positive On Minority Stake Sale Announcement

On Sept. 17, DPL Inc. announced that it entered into an agreement with Astrid Holdings L.P., a wholly owned subsidiary of Caisse de depot et placement du Quebec (CDPQ), to sell a 30% indirect interest in subsidiary Dayton Power&Light Co. (d/b/a AES Ohio) for $546 million. We anticipate that the transaction will close in the first half of 2025 and expect DPL to use sale proceeds to reduce debt and fund general corporate purposes. We therefore revised our outlooks on DPL and subsidiary AES Ohio to positive from stable and affirmed the ratings on both companies, including the 'BB' long-term issuer credit ratings. We now view the capital securities issued by DPL Capital Trust II as hybrid securities

...- On Sept. 17, DPL Inc. announced that it entered into an agreement with Astrid Holdings L.P., a wholly owned subsidiary of Caisse de depot et placement du Quebec (CDPQ), to sell a 30% indirect interest in subsidiary Dayton Power & Light Co. (d/b/a AES Ohio) for $546 million. - We anticipate that the transaction will close in the first half of 2025 and expect DPL to use sale proceeds to reduce debt and fund general corporate purposes. - We therefore revised our outlooks on DPL and subsidiary AES Ohio to positive from stable and affirmed the ratings on both companies, including the '##' long-term issuer credit ratings. - We now view the capital securities issued by DPL Capital Trust II as hybrid securities and lowered the rating on these instruments by one-notch to 'B' from 'B+'. - The positive outlooks reflect the likelihood that we could upgrade both DPL and AES Ohio over the next several quarters should DPL successfully close the transaction while reaching constructive outcomes in its...

Research Update