A series of negative news about Dexia was published last weekend. The Group is once again at pains to stress the stable nature of its shareholding and solid capital base, as testified by its Tier 1 ratio (11.4%) and Core Tier 1 ratio (10.3%) as published at the end of June 2011.
Dexia has implemented the whole of its long-term funding programme for 2011, having raised EUR 18.4 billion of long-term resources as at 9 September 2011. Dexia has also maintained an accelerated asset-disposal rhythm in accordance with the decision taken in late May 2011, selling off almost EUR 24 billion of assets, including almost all of its Financial Products portfolio.
As the Group has always claimed, Dexia has thus no need to renew the guaranteed funding whose maturity is imminent (EUR 13.1 billion in 2011), these resources having first been used to finance the sold-off assets as part of the deleveraging programme. Finally, the Group has no intention of borrowing on the senior unsecured market, having completed its funding programme and having, for several quarters now, retained a highly opportunistic approach towards this market segment. Accordingly the Group has no need to issue senior debt at the current high CDS level, which is not very liquid and reflects exceptional market circumstances.
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