Dexia Kommunalkredit Bank (DKB) has noticed today the downgrade of its ratings by Moody's and heavily regrets this decision

Brussels (Belgium) 21 December (PROTEXT/ots) - During the fourth quarter of 2008, DKB was indeed impacted by the crisis. Since then, DKB has become a 100% subsidiary of Dexia Crédit Local (DCL) and a large number of measures have been taken to support the bank.

A new governance has been set up to enhance an appropriate risk, operations management and accounting process for DKB.

All transactions have been successfully migrated into the IT platforms of DCL, as such DKB is no longer dependent on the services previously provided by Kommunalkredit Austria, and operational risk is also very limited.

Furthermore, with the support of DCL, Dexia Kommunalkredit Bank will respect a Tier 1 capital ratio of minimum 7% in Austrian GAAP.

Finally it is important to notice that, as of end September 2009, the equity of the bank under IFRS has become again positive due to a solid recovery of the AFS reserve over the first 9 months of the year.

Since the end of 2008, all measures and steps taken show an improvement and strengthening of the situation of DKB. This is also recorded and obvious in the financial statements of the bank, which have been under full control of its sole shareholder since last year.

Press Contact: Dirk Wechmann

redRobin. Strategic Public Relations GmbH. Altonaer Poststraße 13a. 22767 Hamburg

Tel: 040-692 123-28. Fax: 040-692 123-11. E-mail: wechmann@red-robin.de

About Dexia

Dexia is a European bank, with about 35,500 members of staff and a core shareholders’ equity of EUR 18.3 billion as of September 30, 2009. Dexia Group focuses on Public and Wholesale Banking, providing local public finance actors with comprehensive banking and financial solutions, and on Retail and Commercial Banking in Europe (mainly Belgium, Luxembourg and Turkey). Main activities encompass retail, commercial and private banking, but also insurance, asset management and investor services activities.

For more information: www.dexia.com

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