The ratings on DPL Inc. reflect the financial and business risk profile of the consolidated enterprise, including its utility subsidiary Dayton Power&Light Co. (DP&L). DPL's stated objective is to remain a stand-alone company, with the intent to emphasize its regulated transmission and distribution operations and nonregulated power generation. Consolidated credit quality reflects lower cash flow coverage measures, high consolidated debt leverage, and decreased wholesale power-pricing expectations on peaking power plant investments, as well as DPL's expectations for a degree of economic recovery. DPL's cash flow potential has been adversely affected by weaker wholesale energy prices in the East Coast Area Reliability (ECAR) region. Therefore, DPL's debt-financed expansion of nonregulated peaking plants has not produced the level of profitability
