Fitch lowers DPL, Dayton Power views to negative

Fitch Ratings said it affirmed the long-term issuer default ratings of DPL Inc. at B+ and Dayton Power Light & Co. at BB+.

The outlook for both entities was revised to negative from stable.

The affirmed ratings include DPL’s long-term issuer default rating at B+, short-term issuer default rating at B, secured debt at BB with recovery rating of RR2 and senior unsecured debt at BB- with recovery rating of RR3.

Dayton Power & Light’s long-term issuer default rating also was affirmed at BB+, senior secured debt at BBB, preferred stock at BB and short-term issuer default rating at B.

The agency also affirmed DPL Capital Trust II’s junior subordinate debt at B with recovery rating of RR5.

The negative outlook reflects a recent Ohio Supreme Court order that jeopardizes the company’s pending electricity security plan, the agency said.

The agency also needs alternative rate relief to maintain the ratings, Fitch said.

The companies should have sufficient liquidity to cover net cash needs in the next 12 months, the agency added.

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