April 19 - Fitch Ratings has downgraded the class A notes of the Dexia
Secured Funding Belgium NV, Compartment DSFB-IV (DSFB-IV) transaction due to the
deterioration of the credit quality of the portfolio, as follows:
DSFB-IV's EUR3,708.5m class A notes downgraded to 'AA-sf' from 'AAsf', Negative
Outlook and removed the Rating Watch Negative (RWN).
The class A notes are capped at the rating of the Kingdom of Belgium (downgraded
to 'AA'/Negative/'F1+' from 'AA+'/'F1+'/RWN on 27 January 2012).
The downgrade of the notes follows the deterioration of the average credit
quality of the portfolio, as a result of the link between Fitch's credit view of
Belgian local authorities and the sovereign rating. The portfolio is made up of
100% senior loans to public entities located in the three Belgian regions:
Brussels (10.4%), Flanders (55.4%) and Wallonia (34.2%). The average credit
quality of the portfolio, which reflects the issuer's default probability, is
now at 'A-', compared to 'AA'/'AA-' at the transaction's closing date, in
December 2009. There are no defaulted or delinquent loans in the pool.
The transaction has been deleveraging since closing. The current credit
enhancement of class A notes is now 9.0%, versus 7.2% on the closing date.
However, the portfolio deterioration is not entirely compensated by the
portfolio's deleveraging and subsequent increase in CE level.
The transaction documentation has been amended following the downgrade of Dexia
Bank Belgium SA/NV (DBB) to 'A-'/'F1'/Stable, from 'A'/'F1'/RWN on 31 January
2012. The amended transaction documents have been reviewed by Fitch.
The transaction is a securitisation of Belgian public entities' debt governed
under Belgian law and originated by DBB.
Additional information is available at www.fitchratings.com.
The ratings above were solicited by, or on behalf of, the issuer, and therefore,
Fitch has been compensated for the provision of the ratings.
Sources of information: in addition to those mentioned in the applicable
criteria, the sources of information used to assess these ratings were Investor
and Servicer Reports.
Applicable criteria 'Global Structured Finance Rating Criteria', dated 4 August
2011'; 'Global Rating Criteria for Corporate CDOs', dated 10 August 2011;
'Counterparty Criteria for Structured Finance Transactions', dated 12 March 2012
is available at www.fitchratings.com.
Applicable Criteria and