Fitch lowers Dexia Credit Local

Fitch Ratings said it downgraded the long-term rating of Dexia Credit Local's state-guaranteed debt to AA- from AA.

The short-term rating on the company’s state-guaranteed debt also was affirmed at F1+.

The downgrades follow a similar downgrade of Belgium's long-term foreign-currency issuer default rating to AA- from AA in December, Fitch said.

Belgium is now the lowest-rated country among the three guarantors of Dexia Credit Local’s state-guaranteed debt. The two others being France and Luxembourg, the agency said.

Other issuer and debt ratings of Dexia Credit are unaffected by this rating action, Fitch said.

The ratings on the debt guaranteed by Belgium, France and Luxembourg are aligned with the ratings of Belgium as the lowest-rated guarantor, the guarantee being several, but not joint, the agency said.

Each of the three states is responsible for a share of the overall guarantee and Fitch said it rates DCL's state-guaranteed debt on a first-dollar loss basis.

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