Moody’s Investor Services has re-iterated its Baa2 rating--the ninth highest score on its 21 level scale--on Dexia Credit Local’s long-term debt, following European Commission approval of a revamped state bailout plan.

Last month Brussels cleared a refreshed state aid programme by three governments, including Luxembourg’s. “Moody’s considers this scheme essential to ensure DCL’s ability to service its senior debt over its run-off period,” the credit rating bureau said on Tuesday morning.

The rating only applies to debt issued by the Dexia group’s DCL unit, which specialises in banking services for local governments in France. A lower credit score could drive up the bank’s borrowing costs in the global capital markets.

In November, the Belgian and French states announced a plan to inject a further €5.5 billion into Dexia group, via the issuance of “preference shares”, without which the bank would have been left insolvent.

In addition, the banking group now has €85 billion in government refinancing guarantees for the next 10 years: 51% backed by Belgium, 46% by France, and 3% by the Luxembourg state.

Shareholders voted in favour of the deal on December 21, with the European Commission blessing the bailout on December 28, and the Belgian and French states purchased the shares on December 31, according to Dexia group statements.

The three countries combined have put more than €10 billion in the bank since 2008, when it was hit by the sovereign debt crisis.

“The commission concluded that these aid measures are compatible with EU state aid rules for banks during the financial crisis,” the office of Joaquín Almunia, European competition commission, said in a press announcement last month.

“These measures confirm the very strong support from the three governments and Moody’s view that they will likely continue to take all necessary measures to ensure DCL’s ability to service its senior debt,” the ratings agency wrote in its report.

In addition, “the projected financials presented in its orderly resolution plan suggest that the group should maintain a regulatory capital ratio above the minimum requirements over the run-off period.”

However, in placing the unit on its “negative watch list,” Moody’s warned that it could lower the rating in the foreseeable future. “The negative outlook reflects the negative outlooks on the ratings of the Belgian and French governments.”

DCL is likely to be merged with two French state-run banks in the future.

As part of its reorganisation, Dexia group has already disposed of its Grand Duchy-based holdings--including former subsidiaries Banque internationale à Luxembourg and Dexia Asset Management, and its 50% stake in RBC Dexia.