Fitch lowers DPL unsecured debt, rates new debt BB

Fitch Ratings said it affirmed the issuer default rating of DPL, Inc. at B+, but downgraded its unsecured debt rating to BB- with recovery rating of RR3from BB with recovery rating of RR2.

Fitch also said it assigned the rating of BB with recovery rating of RR2 to DPL’s newly issued secured debt.

The downgrades follow management’s decision to upsize its revolving credit facilities and make the debt secured by granting liens on certain assets, the agency said.

The outlook remains stable.

Under the new credit agreement, the revolver has been upsized from the current capacity of $100 million to $205 million. The credit agreement provides for increase in the maximum revolver borrowing commitment to $300 million once DPL delivers the Ohio Mortgage, Fitch said.

Absent additional collateral and lenders’ commitment, the revolver borrowings will remain at $205 million. DPL also refinanced the existing unsecured term loan of $125 million with a new secured term loan facility, the agency said. The terms of both facilities have been extended by two years to July 2020, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.