Government-related entity with high likelihood of extraordinary government support from Belgium and France. State ownership and funding guarantee provided for a sizable amount. Loss-making entity in the long run, although the first-time application of a new accounting rule (International Financial Reporting Standards [IFRS] 9) has significantly bolstered its solvency ratios. Tail risks resulting from concentration on single names and geographies, like Italy. Wholesale funding structure influenced by capital markets' appetite for government-guaranteed and secured funding. High sensitivity of liquidity needs to interest rates due to almost completely swapped balance-sheet. S&P Global Ratings' outlook on France-domiciled Dexia Credit Local (DCL) is stable. This reflects our expectation that the bank will implement an orderly wind-down of its operations and continue to benefit
