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TEXT-S&P asgns French Department Gironde 'AA/A-1+' rtg;otlk stable

(The following statement was released by the rating agency)

Oct 12 - Overview

-- We believe the French Department of Gironde has solid liquidity and positive financial management.

-- We are assigning our 'AA/A-1+' long- and short-term ratings to the department.

-- The stable outlook incorporates our expectation that Gironde will be able to maintain sound operating margins and limit its deficit after investments and new debt.

Rating Action

On Oct. 12, 2012, Standard & Poor's Ratings Services assigned its 'AA/A-1+' long- and short-term issuer credit ratings to the French Department of Gironde. The outlook is stable.

Rationale

The ratings reflect our view of the "predictable and well-balanced" institutional framework for French departments, as our criteria define the term, Gironde's "positive" liquidity position, "positive" financial management, sound budgetary performance, and limited debt. The ratings are constrained by the department's restricted budgetary flexibility.