High likelihood of extraordinary government support from Belgium and France, mainly driven by state ownership and substantial funding guarantees. Strong commitment of the Belgian and French governments, enabling steady liquidity improvement. Loss making entity in the long run, although first time application of a new accounting rule (International Financial Reporting Standards 9) is having a significant supportive effect on its solvency ratios. Tail risks resulting from very a high level of unrealized losses in its securities portfolio, and single-name concentration risk. High sensitivity to interest rates due to almost completely swapped balance sheet. Wholesale funding structure influenced by capital markets' appetite for government-guaranteed or secured funding. S&P Global Ratings' outlook on France-domiciled Dexia Credit Local (Dexia) is stable. This reflects
