The rating on electric utility DPL Inc. reflects the continued improvement in the company's financial profile as well as waning concerns regarding corporate governance issues. The company's credit profile is negatively affected by its aggressive financial profile--with high debt leverage, weak cash flow coverage measures, and adequate liquidity--and the satisfactory business risk profile of the consolidated enterprise, including its utility subsidiary, Dayton Power&Light Co. (DP&L). The weaknesses are partially offset by DP&L's regulated operations, which provide a significant amount of consolidated operating income and which have a sound business profile characterized by modest population growth, low-cost generating plants, constructive regulation, and a diverse area economy with no appreciable customer switching. DP&L should continue to provide DPL with a
