Dexia Downgraded To 'BBB-/A-3' On De-Banking; Off CreditWatch; Outlook Stable

On Jan. 1, 2024, Dexia (previously Dexia Credit Local) relinquished its banking license and will therefore continue its orderly wind-down as a nonbank entity. In turn, we now analyze Dexia as a nonbank financial institution (NBFI) and no longer a bank. While partially mitigated by the creation of a new surveillance body by the guarantor states and the maintenance of Dexia's high-quality liquid assets level 1 eligibility, we believe NBFIs face incremental risk relative to banks because they operate outside a regulated framework. We therefore lowered our long- and short-term issuer credit ratings on Dexia to 'BBB-/A-3' from 'BBB/A-2'. The stable outlook reflects our expectation that Dexia will implement an orderly wind-down of its operations and continue to benefit from

...January 2, 2024 - On Jan. 1, 2024, Dexia (previously Dexia Credit Local) relinquished its banking license and will therefore continue its orderly wind-down as a nonbank entity. - In turn, we now analyze Dexia as a nonbank financial institution (NBFI) and no longer a bank. - While partially mitigated by the creation of a new surveillance body by the guarantor states and the maintenance of Dexia's high-quality liquid assets level 1 eligibility, we believe NBFIs face incremental risk relative to banks because they operate outside a regulated framework. - We therefore lowered our long- and short-term issuer credit ratings on Dexia to '###-/A-3' from '###/A-2'. - The stable outlook reflects our expectation that Dexia will implement an orderly wind-down of its operations and continue to benefit from the very strong commitments of the Belgian and French governments in this process over the next two years. PARIS (S&P Global Ratings) Jan. 2, 2024--S&P Global Ratings today lowered its long and short-term...

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