The ratings on DPL Inc. reflect falling business risk centered on subsidiary Dayton Power&Light Co.'s (DP&L) core electric utility operations and the prospect for continued improvement in the consolidated financial profile. Future uncertainty over the direction of utility regulation in Ohio and the company's strategic direction in reaction to any fundamental changes in the state could stall the positive momentum in credit quality. The ratings are based on DP&L's regulated operations, which provide a significant amount of consolidated operating income and have an excellent 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
