MILAN (Standard&Poor's) March 2, 2012--Standard&Poor's Ratings Services said today that its 'C' issue rating on the €700 million undated deeply subordinated notes issued by Dexia Credit Local (DCL; BBB+/Watch Neg/A-2) is not affected by a tender offer announced today by DCL. The notes have been rated 'C' since DCL first deferred interest payment to noteholders on Nov. 18, 2009, and is the same rating we would assign in the event of an exchange offer we considered "distressed," as defined in our criteria. We believe DCL will likely post a profit on the buyback of the notes following the completion of the tender offer. However, the potential gain would not, in and of itself, be sufficient for
