DPL Disappointed by Moody's Ratings Action.Business Editors DAYTON, Ohio--(BUSINESS WIRE)--July 30, 2003 DPL (Digital PowerLine) An earlier technology for transmitting a 1 Mbps data signal over electric power lines from Nortel Networks. It was developed in the late 1990s, but later abandoned due to implementation difficulties. See broadband over power lines. Inc. (NYSE NYSE See: New York Stock Exchange :DPL) said that it is disappointed by Moody's Investors Service's decision to lower the ratings of DPL Inc. and DP&L, given the operational strength at DP&L, its extremely low debt levels and the combined strong cash flows of both companies. "We have had ongoing dialogue with Moody's since it placed DPL on negative outlook and we believed we had addressed the concerns expressed by the agency," said Caroline E. Muhlenkamp, Group Vice President and Interim Chief Financial Officer. "We have announced the steps we are taking to strengthen our balance sheet, improve our liquidity position, and maintain our investment grade ratings." Among the actions announced by DPL: -- Refinancing Refinancing An extension and/or increase in amount of existing debt. of up to $750 million of Consolidated Debt. -- Receiving approval to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. up to $471 million of DP&L First Mortgage Bonds. -- Reducing overall debt by $300 million during the next 30 months. -- Increasing liquidity at the parent company through its financial assets Financial assets Claims on real assets. and strong operations. -- Significantly reducing total capital expenditures for 2003 and 2004, all of which will be internally funded. -- Entering into a rate settlement with its retail customers to extend its current pricing through 2008 which is currently pending approval at the Public Utilities Commission of Ohio The Public Utilities Commission of Ohio (PUCO) is an agency of Federal State of Ohio that is charged with the regulation of utility service providers such as those of electricity, natural gas, and telecommunications as well as railroad safety and intrastate hazardous . "Given our solid cash flows, low risk of utility operations and our stated plans to reduce consolidated debt below 60%, we believe our credit strength is consistent with an investment grade rating," added Muhlenkamp. Muhlenkamp said DPL will continue its dialogue with Moody's to address the concerns it voiced today. About DPL DPL Inc. is a diversified regional energy company. DPL's principal subsidiaries include The Dayton Power & Light Company (DP&L) and DPL Energy. DP&L provides electric services to over 500,000 retail customers in West Central Ohio. DPL Energy markets over 4,600 megawatts of generation capacity throughout the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . DPL Inc., through its subsidiaries, ranks among the top energy companies in generation efficiency and productivity. Further information on DPL Inc. can be found at www.dplinc.com. |
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