Fitch downgrades DPL

Fitch Ratings said it downgraded the issuer default rating of DPL Inc. to BB from BB+ and its senior unsecured debt to BB from BB+.

The agency also placed DPL's ratings on Rating Watch negative, along with the ratings on its wholly owned subsidiary, the Dayton Power and Light Co.

Fitch also said it downgraded DPL Capital Trust II's junior subordinate debt to B+ from BB-.

Also placed on Rating Watch negative includes DPL's short-term issuer default rating of B and Dayton Power's long-term issuer default rating of BBB-, senior secured debt rating of BBB+, preferred stock rating of BB+ and short-term issuer default rating of F3.

Fitch said it expects to resolve the negative watch once the outcome of Dayton Power's recently filed electric security plan is known.

The downgrade was driven by the company's significantly reduced EBITDA and funds-from-operations expectations compared with prior forecasts, the agency said.

DPL's ratings also reflect the company's highly leveraged capital structure and the primary support it receives from the upstream distributions from Dayton Power, Fitch added.

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