We believe that deterioration of Greece's creditworthiness adds to the existing negative pressure on Belgian banking group Dexia's €122 billion legacy portfolio, which includes most of the €4.3 billion direct exposure to Greek sovereign debt. On May 18, 2011, Dexia announced that it will make use of any opportunity to accelerate the deleveraging on the back of its strong capital position. We are placing our 'A/A-1' long- and short-term ratings on Dexia's core banks, Dexia Crédit Local (DCL), Dexia Bank (DB), and Dexia Banque Internationale a Luxembourg (DBIL), on CreditWatch negative. DCL, DB, and DBIL together represent over 90% of group consolidated assets. We expect to resolve the CreditWatch once we have greater visibility on the impact that any potential
