The ratings on DPL Inc. reflect the financial and business risk profile analysis of the consolidated enterprise, including utility subsidiary, Dayton Power&Light. Moreover, the rating reflects the company's stated objective to remain as a stand-alone company, with the intent to emphasize its regulated transmission and distribution operations and nonregulated power development, capitalizing on tight capacity conditions in the East Coast Area Reliability (ECAR) region. DPL's credit quality reflects the expectation for improvement in its capital structure, investment in peaking assets in a capacity-constrained region, strategic investment by Kohlberg Kravis Roberts&Co., and DPL's $1.3 billion investment portfolio that provides liquidity and financial flexibility. Importantly, the company is increasing its business risk profile by building its nonregulated power
