Research Update: DPL Inc. And Subsidiary Dayton Power&Light Outlooks Revised To Developing; 'BB' Ratings Affirmed

Dayton, Ohio-based DPL Inc. announced that its subsidiary Dayton Power&Light Co. (DP&L) has reached a settlement with the Public Utilities Commission of Ohio (PUCO) staff and other parties over several matters, including DP&L's proposed smart grid plan, findings that DP&L passed the significant excessive earning test (SEET) for 2018 and 2019, and findings that DP&L's current electric security plan (ESP 1) satisfies the SEET, and the "more favorable in the aggregate" (MFA) regulatory test. Separately, DPL parent The AES Corp. in recent months provided a statement of intent to provide capital contributions to DPL or DP&L, which as indicated at the time are not guaranteed and are dependent on certain conditions. Although the proposed settlement, in combination with

...- Dayton, Ohio-based DPL Inc. announced that its subsidiary Dayton Power & Light Co. (DP&L) has reached a settlement with the Public Utilities Commission of Ohio (PUCO) staff and other parties over several matters, including DP&L's proposed smart grid plan, findings that DP&L passed the significant excessive earning test (SEET) for 2018 and 2019, and findings that DP&L's current electric security plan (ESP 1) satisfies the SEET, and the "more favorable in the aggregate" (MFA) regulatory test. - Separately, DPL parent The AES Corp. in recent months provided a statement of intent to provide capital contributions to DPL or DP&L, which as indicated at the time are not guaranteed and are dependent on certain conditions. - Although the proposed settlement, in combination with the proposed capital contribution from AES Corp., suggests reduced downside risk for DPL, the regulatory order supporting this settlement is pending. S&P Global Ratings thinks future parental support to DPL could hinge on...

Research Update