Research Update: DPL Inc. And Subsidiary Upgraded Following Sale Of Merchant Generation Assets

Dayton, Ohio-based utility holding company DPL Inc. announced that it has closed on the sale of its remaining gas-fired generation assets to Kimura Power LLC for nearly $240 million cash. DPL will use the proceeds primarily to repay debt at both DPL and subsidiary Dayton Power&Light Co. (DP&L). As a result, we are raising our issuer credit ratings on DPL and DP&L to 'BBB-' from 'BB' and removing the ratings from CreditWatch, where they were placed with positive implications on Dec. 20, 2017. The outlook on both entities is stable. We are also raising our issue-level ratings on the debt for both entities, including the rating on DPL's senior unsecured to 'BBB-' from 'BB' and the rating on

...+ Dayton, Ohio-based utility holding company DPL Inc. announced that it has closed on the sale of its remaining gas-fired generation assets to Kimura Power LLC for nearly $240 million cash. + DPL will use the proceeds primarily to repay debt at both DPL and subsidiary Dayton Power & Light Co. (DP&L). + As a result, we are raising our issuer credit ratings on DPL and DP&L to '###-' from '##' and removing the ratings from CreditWatch, where they were placed with positive implications on Dec. 20, 2017. The outlook on both entities is stable. + We are also raising our issue-level ratings on the debt for both entities, including the rating on DPL's senior unsecured to '###-' from '##' and the rating on DP&L's senior secured debt to '###+' from '###'. We are removing the debt ratings from CreditWatch, where we placed them with positive implications of Dec. 20, 2017. + At the same time, we are revising our business risk profile assessment on DPL to excellent from satisfactory. + The stable outlook...

Research Update