The rating on DPL Inc. reflects the company's continued improvement in its financial profile with the reduction of about $450 million of debt and improved cash flow generation from its core utility operations as well as its focus on improving its internal control and past corporate governance issues. Still, the company's credit profile is affected by its aggressive financial profile with high debt leverage, weak--albeit improving--cash flow coverage measures, adequate liquidity, and its satisfactory business risk profile risk of the consolidated enterprise, including its utility subsidiary, Dayton Power&Light Co. (DP&L), as well as its nonregulated gas-fired peaking plants. These above-mentioned credits risks and weaknesses are partially offset by DP&L's regulated operations, which provide a significant amount of consolidated
