OREANDA-NEWS. Fitch Ratings has affirmed Dexia Delaware LLC's (Dexia Delaware) USD25bn US commercial paper (USCP) programme's Short-term rating at 'F1'.

KEY RATING DRIVERS
The Short-term rating on the USCP programme of Dexia Delaware LLC is aligned with Dexia Credit Local's (DCL) Short-term 'F1' IDR, based on Fitch's belief that there is an extremely high probability of support from DCL if required. This is based on DCL's guarantees for the securities issued under Dexia Delaware's USCP programme.

DCL's Short-term IDR reflects Fitch's opinion that there is an extremely high probability of support from France (AA/Stable) and Belgium (AA/Negative), in case of need. Dexia Delaware is DCL's fully-owned funding vehicle issuing USCP (short-term debt securities).

Issuance of CP under this programme has been small (around USD180m outstanding) as DCL has favoured issuing short-term debt under its New York branch guaranteed CP programme, which benefits from a several but not joint guarantee from the states of Belgium, France and Luxembourg.

RATING SENSITIVITIES
Dexia Delaware's short-term debt is sensitive to the same factors that would affect DCL's Short-term IDR. DCL's IDRs are primarily sensitive to France's and Belgium's ability and propensity to provide support. The Negative Outlook on DCL's Long-term IDR reflects Fitch's expectation that the implementation of the bank resolution framework in the European Union, including the Single Resolution Mechanism (SRM) in the eurozone, will reduce sovereign support for banks (see "Fitch Affirms Dexia Credit Local & CIFD at 'A'" at www.fitchratings.com for the latest rating action on DCL).