DUFF & PHELPS UPGRADES THE DAYTON POWER AND LIGHT COMPANY FIRST MORTGAGE BONDS TO 'AA-'
CHICAGO, July 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating on Dayton Power and Light Company's first mortgage bonds and collateralized pollution control revenue bonds to `AA-' (Double-A-Minus) from `A+' (Single-A-Plus). The preferred stock rating has been raised to `A+' (Single-A-Plus) from `A' (Single-A). The upgrade reflects Dayton Power and Light's significantly improved financial performance and favorable qualitative credit factors. Continued improvement in credit protection measures and declining debt levels are expected as a result of the 1992 three-year Zimmer coal plant rate settlement and management's ongoing commitment to hold down costs. Dayton Power and Light is favorably positioned for an increasingly competitive environment. The company has low rates; a healthy service area economy; and well-maintained, efficient plants. High levels of plant availability allow the company to operate with a below average, yet adequate, reserve margin which reduces costs. The lack of any foreseeable additional rate increase requirements supports retention of the company's strong competitive position. With strong cash flow, construction through 1995 will be funded entirely by internal cash. Construction expenditures will largely reflect the addition of new peaking capacity and the stepped-up demand side management programs agreed to in the Zimmer settlement. Dayton Power and Light, the principal subsidiary of DPL Inc., provides electricity and natural gas to customers in a 6,000 square mile area of west central Ohio. Dayton Power and Light also provide steam service to customers in downtown Dayton, Ohio. -0- 7/29/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (DPL)
CO: Dayton Power and Light Company ST: Ohio IN: UTI SU: RTG
WB -- NY053 -- 7487 07/29/93 11:52 EDT
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|Date:||Jul 29, 1993|
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