Core status to the AXA insurance group, due to importance of operations in Belgium. Sound capital base, albeit likely to decline. Resilient asset quality in Belgium. Adequate market position in Belgium. Structurally weak profitability. Limited business diversification. Exposure to interest rate movements. Untested European banking strategy. The ratings on Belgium-based AXA Bank Europe S.A. (ABE) primarily reflect its status as a core member of the AXA insurance group (core operating subsidiaries insurer financial strength rating AA-/Stable), due to the bank's activities in Belgium. Additional rating factors are the bank's sound capitalization, resilient asset quality in its core domestic market, and adequate market position in Belgium. Offsetting these factors are ABE's structurally weak profitability, limited business diversification, exposure to market risk,
