Fitch: Dolphin notes at BB+

Fitch Ratings said it assigned a BB+ rating to Dolphin Subsidiary II, Inc.'s senior notes issuance. The outlook is stable.

Dolphin is a special purpose entity that is a wholly owned indirect subsidiary of the AES Corp.

The proceeds from the senior notes due 2016 and 2021 will be used to partially finance the company's pending acquisition of DPL Inc.; AES already has raised $2.05 billion of permanent acquisition financing at the parent level.

Dolphin has been created for the sole purpose of issuing acquisition financing. Upon consummation of the merger, Dolphin will merge into DPL and the notes will become senior unsecured obligations of DPL.

The rating on the notes reflects the expected ratings for DPL's senior unsecured debt following consummation of the merger, Fitch said.

Fitch also said it will maintain the Rating Watch negative for DPL's long-term issuer default rating of BBB+, senior unsecured notes rating of BBB+ and short-term issuer default rating of F2.

The agency also said it will maintain the negative watch on Dayton Power & Light Co.'s long-term issuer default rating of BBB+, senior secured debt rating of A, preferred stock rating of BBB and short-term issuer default rating and commercial-paper rating of F2.

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