S&P affirms Dexia Credit

Standard & Poor's said it affirmed the A/A-1 ratings on nine bond issues supported by Dexia Credit Local (A/A-1) letters of credit and removed the ratings from CreditWatch with negative implications, where they were placed on June 1.

The ratings reflect the credit and liquidity support that Dexia Credit Local provides in the form of irrevocable direct-pay letters of credit, the agency said.

The long-term components of the ratings are based on the long-term issuer credit rating on Dexia Credit Local and address full and timely payments of interest and principal when the bondholders have not exercised the put option, the agency added.

The short-term components of the ratings are based on the short-term issuer credit rating on Dexia Credit Local and address full and timely payments of interest and principal when the bondholders have exercised the put option.

The affirmation reflects the July 7 affirmation of the long- and short-term issuer credit ratings on Dexia Credit Local and the removal of those ratings from CreditWatch negative.

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