Fitch to cut DPL

Fitch Ratings said it expects to downgrade DPL Inc.'s long-term issuer default rating and senior unsecured debt rating to BB+ from BBB+ following consummation of DPL's acquisition by the AES Corp. (B+/stable).Fitch expects to downgrade DPL's short-term issuer default rating to B from F2 and DPL Capital Trust II's junior subordinated debt to BB- from BBB-.

The ratings are based on the proposed terms of the AES acquisition, which include an additional $1.25 billion of senior unsecured debt at DPL, the agency said. Pro forma for the completion of the acquisition, DPL's consolidated capital structure would include $2.6 billion of long-term debt and $22.9 million of preferred stock.

Fitch said it is maintaining DPL's BBB+ long-term issuer default rating, BBB+ senior unsecured debt rating and F2 short-term issuer default rating on Rating Watch negative. The Rating Watch on these ratings would be resolved following the completion of the acquisition.

© 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.