High likelihood of extraordinary government support from Belgium and France, mainly due to the bank's 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 the first-time application of a new accounting rule (International Financial Reporting Standards [IFRS] 9) significantly bolstered its solvency ratios. Tail risks resulting from concentration on single names and geographies, like Italy. High sensitivity of liquidity needs 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 (DCL) is stable. This reflects our expectation that the bank will implement
