The European Commission authorized the orderly resolution plan for the Dexia group, including Dexia Credit Local (DCL), on Dec. 28, 2012, enabling the group's recapitalization by the Belgian and French governments and the establishment of a definitive funding guarantee scheme. We assess the likelihood of extraordinary government support to DCL from Belgium and France as "high" under our criteria for rating government-related entities. We are affirming the 'BBB/A-2' long- and short-term ratings on DCL. At the same time, we are removing the ratings from CreditWatch with negative implications, where we placed them on Nov. 23, 2011. The outlook is stable, reflecting the strong commitment of the Belgian and French governments to assist DCL in its orderly wind-down. PARIS (Standard&
