Research Update: Dexia Core Bank 'A/A-1' Ratings Placed On Watch Negative On Greece Exposure And Potential Acceleration Of Deleveraging May 11
- Language: English
- Published: May 2011
- Region: Greece
The ratings on Dexia Crédit Local (DCL), 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 main operating banks. Dexia has a unique and dominant position in the European local government market, a low-risk business mix, excellent asset quality, good operating performance, and satisfactory capital base. The group's reliance on wholesale funding is mitigated by conservative management practices. Although Dexia favored organic growth in the past four years, its past external growth operations carried inherent execution risks. This was exemplified by the purchase of Labouchère N.V. (now Dexia Bank Nederland N.V.; DBnl), which was a strategic and financial failure. Dexia's expertise...
Companies mentioned in this report are:
- Belfius Bank
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >
- Belfius Bank