S&P: Dayton Power notes BBB-

S&P said it assigned a BBB- rating to Dayton Power & Light Co.'s announced offering of $445 million senior secured notes and placed the rating on CreditWatch with negative implications.

The recovery rating on this debt is 1, indicating 90% to 100% expected default recovery.

The BB issuer credit rating on Dayton Power & Light and its parent, DPL Inc., remain on CreditWatch, where they were placed with negative implications in June.

The BBB- rating on Dayton Power's proposed $445 million of senior secured note offering and 1 recovery rating indicates 90% to 100% expected default recovery.

The CreditWatch listing is based on the Ohio Supreme Court's opinion that reverses the Public Utilities Commission of Ohio's approval of the company’s non-bypassable SSR, S&P said.

Under the current SSR, the company was permitted to collect about $110 million per year from 2014 to 2016, the agency explained.

The Ohio Supreme Court's opinion increases the likelihood of a weaker financial risk profile, reflecting weaker financial measures for DPL and Dayton Power, which could result in a downgrade, S&P said.

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