Dayton, Ohio-based Dayton Power&Light Co. (DP&L) recently closed on a new credit agreement, providing a secured term loan facility of $445 million applied toward the refunding of DP&L's first mortgage bonds due in 2016. The Public Utilities Commission of Ohio (PUCO) has restored the company's previously authorized rates after the Ohio Supreme Court's reversal of DP&L's non-bypassable service stability rider threatened to drastically lower rates. We are affirming our 'BB' issuer credit ratings on DP&L and its parent, DPL Inc., and removing the ratings from CreditWatch. The rating outlook is negative. Our recovery rating on DP&L's secured term loan is '1', indicating our expectation for a very high (90%-100%) recovery in a default. Our recovery rating for parent
