Echoing a decision made by Standard & Poor's, Fitch Ratings revised its outlook on Dexia SA and certain subsidiaries to negative from stable, citing "the impact of continuing deterioration in the U.S. housing market on Dexia's [residential mortgage-backed securities] portfolio," which is largely held by the Franco-Belgian bank's bond insurer subsidiary Financial Security Assurance Inc.

While voicing its concerns, Fitch affirmed Dexia's long- and short-term issuer default ratings at AA-plus and A-minus based on the bank's "dominant position in European public finance, strong loan quality and sound capitalization."

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