On July 4, 2023, Dexia group initiated a request to abandon its banking and investments service licenses and continue to carry out its run-off with the support of the French and Belgian states. In our view, nonbank financial institutions face incremental risk relative to banks because they operate outside a regulated framework. We therefore placed our ratings on Dexia Credit Local and Dexia Crediop SpA on CreditWatch with negative implications. The group's government-guaranteed debt is unaffected by the rating action. We aim to resolve the CreditWatch placement upon agreement by relevant authorities, resulting in a one-notch downgrade of the rated entities. On July 7, 2023, S&P Global Ratings placed its 'BBB/A-2' long- and short-term issuer credit and issue ratings on
