S & P ends Dexia surveillance

(ADW) The financial rating agency, Standard and Poor's (S & P), withdrew its surveillance on Dexia bank Thursday evaluating that the acceleration of its programme to sell risky assets to offset the bank’s exposure to Greek debt.

The Franco-Belgian bank announced in late May that it would pass of 3.6 billion euros through its accounts in the second quarter as exceptional charge to cover value loss of certain assets on the market and the estimated costs of accelerated sale.

“This will improve the risk profile of Dexia and reduce its liquidity needs”, says S & P in a statement. "We believe that Dexia's exposure to Greek debt is important in relation to the turnover of the bank but absorbable because of its capital," says the rating agency.

Greece: A worrying exposure

S & P maintains however, the long-term debt bill of the bank at "A" therefore a negative outlook, due to its exposure to the Greek sovereign debt and the risk of contagion.

Dexia was prepared to "certain conditions" to participate in the second rescue plan being prepared for Greece unable to cope with the repayment of its huge debt, according to the bank’s bosses, as reported on Tuesday in the Belgian press.