The ratings on France-based Dexia Crédit Local (DCL), Belgium-based Dexia Bank S.A. (DB), and Dexia Banque Internationale à Luxembourg (DBIL) rely on a consolidated analysis of the Dexia group (Dexia), for which they act as the three core operating banks. Dexia has a unique and dominant position in public finance, a low-risk business mix, excellent asset quality, sound operating performance, and a strong capital base. The group's reliance on wholesale funding is mitigated by wide diversification by market and instrument. Dexia's acquisition strategy carries inherent execution risks. Although Standard&Poor's Ratings Services recognizes the strategic rationale behind the 2006 acquisition of Turkish bank DenizBank Financial Services Group (DenizBank, not rated), the move is viewed as a departure from Dexia's
