Increased competition because of lower wholesale electricity prices will continue to materially reduce DPL's profit margins. We expect the unregulated retail business to grow because of the eventual transition to generation market rates. The company's financial position is stressed due to the substantial amount of acquisition debt layered on by parent company AES. We are lowering our ratings on DPL Inc. and its wholly owned subsidiary, Dayton Power&Light (DP&L), including the corporate credit rating on both entities, to 'BB' from 'BBB-' and removed them from CreditWatch with negative implications. We are also lowering our issue ratings on DPL's senior unsecured debt to 'BB-' from 'BB+' and on DP&L's senior secured debt to 'BBB-' from 'BBB+'. The outlook is
