The ratings on utility holding company DPL Inc., whose principal subsidiary is Dayton Power&Light Co. (DP&L), reflect an excellent business risk profile (we rank utility business risk profiles from excellent to vulnerable) and an intermediate consolidated financial profile (we rank financial profiles from minimal to highly leveraged). The company's excellent business risk profile is based on a constructive regulatory climate in Ohio that we view as "credit supportive," a focus on a relatively low-risk regulated core utility business model, generally low-cost generating facilities, and the completion of a heavy environmental compliance program. Also in recent years, DPL has reduced debt leverage, improved its overall financial condition, strengthened corporate governance, and reduced business and financial risks. A lack of
