Spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the financial activity shaping the markets on 4th October 2011.
Dexia Banque Internationale a Luxembourg, Dexia Bank Belgium and Dexia Credit Local have all been placed on review for a possible downgrade by Moody’s.
The ratings agency yesterday (October 3rd) announced its decision regarding the three assets of Dexia Group.
It revealed concerns about the state of the liquidity of the group, as well as its standalone bank financial strength ratings.
In a previous statement, Moody’s asserted that the group relies on short-term funding and the resulting liquidity gaps therefore make it “vulnerable” to uncertain market conditions.
Following that July announcement, the ratings agency believes this problem has worsened.
Commenting, Dexia Group stated that since the end of 2008 it has been working towards rebuilding its financial structure and has pushed its Tier 1 ration from 10.6 per cent to 11.4 per cent.
“However, in the current environment, the size of the non-strategic asset portfolio (so-called legacy) impacts the group structurally despite the good credit quality of its assets,” the organisation said.
As of 09:11 BST today, Dexia Group’s share price had plummeted by 21.77 per cent in Brussels.
See the full range of spread betting and CFD trading markets at City Index .
Spread betting and CFDs are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
Start spread betting: http://www.cityindex.co.uk/spread-betting/start-spread-betting.aspx
Start CFD trading: http://www.cityindex.co.uk/cfd-trading/start-trading-cfds.aspx
* Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, financial spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.
