Standard & Poor's announced last week that it revised its outlook to negative from stable on the core entities of Dexia SA, citing the potential impact of "faster-than-expected deterioration of the U.S. housing market" on the Franco-Belgian bank's bond insurer subsidiary Financial Security Assurance Inc.

Standard & Poor's noted an increased likelihood of "additional impairment charges and provisions" at FSA, which could lead to "volatility in performance" and make internal capital generation more difficult for Dexia at the consolidated group level.

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