Cat XL
Shizuka Minamoto
Dexia Credit Local
Dexia Credit Local 'BBB/A-2' Ratings Still On CreditWatch Negative Pending Outcome Of EC Investigation Into State Aid
Dexia Credit Local 'BBB/A-2' Ratings Still On CreditWatch Negative Pending Outcome Of EC Investigation Into State Aid
- The 'BBB/A-2' counterparty credit ratings on Dexia Credit Local (DCL) remain on CreditWatch with negative implications.
- This is pending the conclusion of the in-depth investigation by the European Commission (EC) into the resolution plan presented by Dexia S.A., DCL's owner, to restructure the bank group.
- The CreditWatch resolution will depend on our assessment of the likelihood of future support to DCL from the Belgian, French, and Luxembourg governments, the conditions of the funding guarantees by these governments, and the bank's future capital adequacy and profitability prospects.
- The size of the government guarantee funding package relative to DCL's funding and liquidity needs in the foreseeable future;
- The Belgian, French, and Luxembourg governments' commitment to provide future support to DCL in case of need;
- DCL's future profitability prospects, including government guarantee costs, and capital adequacy.
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