Moody's may upgrade DPL

Moody's Investors Service said it placed the long-term debt ratings of DPL Inc. and The Dayton Power and Light Co. (DP&L) under review for possible upgrade.

Affected ratings placed under review include DPL's Ba1 senior unsecured debt and DP&L's Baa1 senior secured debt, the agency said, noting that the review is prompted by the significant deleveraging of the parent company following the sale of its private equity portfolio for net cash proceeds of $868 million.

The agency also noted a concurrent reduction in business risk as a result of the portfolio sale and management's focus on its core utility business.

The review of DPL and DP&L's ratings will focus on the company's cash generating prospects in light of the recent rate settlement, the magnitude of its exposure to rising fuel and environmental costs in excess of the recovery provided by the settlement and plans for refinancing or redeeming $225 million of debt due at the parent in 2007, the agency 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.