The ratings on Dayton, Ohio-based DPL Inc. reflect falling business risk centered on DPL's core electric utility operations at subsidiary Dayton Power&Light Co. (DP&L) and the prospect for continued improvement in the consolidated financial profile. The ratings are founded on DP&L's regulated operations, which provide a significant amount of consolidated operating income and 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 reliable source of cash flow. DPL's stated objective is to remain a stand-alone company, with an emphasis on regulated transmission and distribution operations and unregulated power generation, which could lead to an
