UPDATE 1-S&P may cut FSA from 'AAA' on Dexia credit concern

NEW YORK, Oct 8 (Reuters) - Standard&Poor's on Wednesday said it may cut the top 'AAA' ratings on bond insurer Financial Security Assurance on concerns that parent Dexia SA will be less able to financially support the unit. S&P on Tuesday cut its ratings on the four core entities of the Belgian-French banking group in its second such move in a week, citing the pressure of market conditions on their ability to access funding. For details see [ID:nN07474096]. 'FSA's ability to raise capital and access to liquidity are, we believe, very strongly linked and limited to Dexia,' S&P analyst Robert Green said in a statement. 'We believe ongoing support from Dexia for FSA is less certain in view of its weaker credit profile and recent changes to ownership and senior management,' he said. 'These changes raise questions as to whether... [read full story]