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.
Franco-Belgian bank Dexia has been placed on review for a downgrade by ratings agency Moody’s, signalling further bad news for the bank which is already combating heavy exposure to Greece.
Europe-wide banking regulator the European Banking Authority will publish results of stress tests for 91 banks across the region later today, once markets have closed.
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.
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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.