S&P cuts DPL

Standard & Poor's said it lowered its corporate credit ratings on DPL Inc. and subsidiary Dayton Power & Light Co. two notches, to BB from BBB-, and removed them from CreditWatch negative. The outlook is stable.

At the same time, the agency said it lowered its issue rating on DPL's senior unsecured debt to BB- from BB+. The agency said it assigned a recovery rating of 5, indicating the expectation that lenders would receive modest recovery of principal in a default.

The agency also lowered the issue rating on DP&L's senior secured debt two notches, to BBB- from BBB+. The agency revised the recovery rating on the senior secured debt to 1, reflecting high recovery, from 1+.

All debt issue ratings were also removed from CreditWatch negative.

S&P said its ratings on DPL Inc. reflect the company's consolidated credit profile, which includes its association with the weaker credit quality of its parent, AES Corp.

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