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S&P assigns DPL notes BB
Standard & Poor's said it assigned its BB issue-level rating and 3 recovery rating to DPL Inc.'s proposed $200 million of senior unsecured notes due 2019.
The 3 recovery rating denotes prospects for meaningful (50% to 70%) recovery in the event of a payment default.
The company will use the proceeds, together with cash on hand and/or the proceeds from other short-term borrowings, to finance its tender offer for up to $280 million of its outstanding $450 million 6˝% senior notes due 2016. The net effect is expected to be about an $80 million reduction of consolidated debt.
Because the transaction does not materially affect DPL Inc.'s financial measures, the corporate credit rating and outlook on DPL remain unchanged. Moreover, the issue and recovery ratings on DPL's and its related subsidiaries' existing debt, including Dayton Power & Light Co., likewise remain unchanged, because this transaction does not significantly alter the agency’s debt assumptions or valuation given default.
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