Dexia is selling its Banque Internationale à Luxembourg business to Qatari investment group Precision Capital and the Grand Duchy of Luxembourg.
The asset management arm of Dexia Group, Dexia Banque Internationale Luxembourg (DBIL), has been downgraded by Moody’s due to uncertainty about its potential buyers and the future of Dexia Credit Local.
Dexia has confirmed it is negotiating the sale of its Luxembourg retail and private banking unit and there are widespread rumours it may nationalize its Belgian banking unit, yet Dexia Asset Management claims it remains unaffected.
The recently established Banque Havilland has completed its acquisition of Dexia Private Bank Monaco from Dexia Banque Internationale à Luxembourg.
Credit Agricole, BNP Paribas, Societe Generale, as well as Dexia Group, are at risk of having their standalone financial strength, long term debt and deposit ratings downgraded by agency Moody’s due to their exposure to Greek debt.
Dexia Group faces being hit with downgrades to its Paris, Belgium and Luxembourg banking operations as per their standalone bank financial strength (BFSRs), and long-term senior debt and deposit ratings, while its subsidiaries are also likely to be affected.