Standard&Poor's Ratings Services is maintaining its 'BBB/A-2' long- and short-term issuer credit ratings on Dexia Credit Local (DCL) on CreditWatch with negative implications. We expect to resolve the CreditWatch in the coming months once we have greater visibility on the following elements: The size of the government guaranteed funding package relative to DCL's funding and liquidity needs in the foreseeable future; The Belgian, French, and Luxembourg governments' commitment to providing future support to DCL in case of need; DCL's future capital adequacy and profitability prospects, including government guarantee costs; and The potential for the European Commission (EC)'s approval of parent Dexia S.A.'s restructuring plan. We could affirm the issuer and senior debt ratings if we believed that the
