Moody's lowers Dayton Power view to stable

Moody's Investors Service said it affirmed DPL Inc.'s Ba1 senior unsecured rating and Dayton Power & Light Co.'s Baa2 issuer rating and A3 first mortgage bond.

The agency also said it changed the outlooks on both companies to stable from positive.

Heightened uncertainty regarding Dayton Power's ability to collect its distribution modernization rider (DMR) until the end of its third electric security plan no longer justifies the maintenance of a positive outlook, Moody's said.

This uncertainty has arisen after the Ohio Supreme Court last week ruled that the Public Utilities Commission of Ohio had improperly authorized the neighboring utility subsidiaries of FirstEnergy Corp. to collect the DMR charges, ending their collection from ratepayers, the agency said.

The utility's regulatory capital structure has further benefited from the company's commitment not to upstream any cash flows in the form of dividends or tax payments to its parent company, Moody's said.

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