High likelihood of extraordinary government support from Belgium and France. Strong commitment of the Belgian and French governments to improve liquidity through short-term extraordinary support. Very high level of unrealized losses in securities portfolio, reflecting sensitivity to credit spreads. High sensitivity to interest rates due to completely swapped balance sheet. High recourse to funding from central banks. Standard&Poor's Ratings Services' outlook on Dexia Credit Local (Dexia) is stable. It reflects our expectations that Dexia will implement an orderly wind-down and will continue to benefit from the strong commitment of the Belgian and French governments in this process. The ratings already factor in our expectation that Dexia will be loss making until 2018 at the earliest. A lowering of
