We consider the European Commission's approval of Dexia's restructuring plan is supportive of Dexia's strategy to deleverage and to reduce funding imbalances over time. In the next two years, Dexia faces a delicate deleveraging period without the possibility of recourse to government guaranteed debt beyond June 30, 2010. We are revising our outlooks on Dexia's core banks to negative from stable. We are affirming our 'A/A-1' counterparty credit ratings on Dexia Crédit Local, Dexia Bank, and Dexia Banque Internationale a Luxembourg. The negative outlooks reflect our view that Dexia's business and financial profile in the next two years will be under the negative pressure of an expected rise in funding costs. MILAN (Standard&Poor's) Feb. 10, 2010--Standard&Poor's
