Dexia will provide a $5 billion committed standby line of credit to FSA's Financial Products segment

Regulated information – Brussels, Paris, New York, June 23, 2008 – Dexia SA and its subsidiary Financial Security Assurance Holdings Ltd., the holding company for Triple-A monoline bond insurer Financial Security Assurance Inc. (FSA), announced today that Dexia will provide a $5 billion committed, unsecured standby line of credit to the Company's Financial Products (FP) segment, which issues guaranteed investment contracts to municipal issuers and others requiring Triple-A rated deposits. The line will have an initial term of five years and will be renewed as needed thereafter.

Robert P. Cochran, chairman and chief executive officer of FSA Holdings and FSA said: “Our FP business has always had a conservative liquidity strategy. Under a wide range of stress scenarios, this business has ample liquidity to meet its obligations, but, within a context of highly nervous financial markets, we want to remove any doubt that we will have the resources to hold investment assets to maturity.”

Axel Miller, chief executive officer of Dexia, said: "On a stand-alone basis, FSA is strong and has acquired a leadership position in public, project and infrastructure finance, a core and strategic activity for Dexia. Over the last quarters, both Dexia and FSA have been in a position to demonstrate to the market that they were willing and able to develop their franchise and to continue to provide credit enhancement and financial solutions to the US and international public sector. This is currently done at very attractive returns and strong credit conditions. In a ravaged industry, this does not come by accident. Thanks to its superior and disciplined credit culture, FSA has been able to avoid the worst mistakes made by the industry and to maintain its AAA ratings with stable outlook with capital above and in excess of rating agencies' AAA requirements. FSA has crafted its liquidity structure and reinforced it in recent months to withstand pretty severe liquidity stress tests.
We are committed to taking any and all necessary measures to ensure that FSA's ratings and leadership position in public finance are maintained and, to that end, will take the necessary steps, taking advantage of Dexia's easy and ample access to liquidity, to confirm to clients and investors that we are in for the long haul, even if such steps are not necessary from a strict liquidity point of view."


Dexia ( is a European bank and the world leader in local public finance. Dexia is one of the top fifteen banking groups in the euro zone with a stock market capitalization of EUR 20.3 billion and 35,200 employees in 37 countries as of December 31, 2007. Dexia has one of the highest credit ratings in the banking industry. Dexia's development strategy is based on two pillars: its Universal Banking business in Europe (Belgium, Luxembourg, Slovakia and Turkey), and world leadership in Public/Project Finance.

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