Strong capitalization. Sound funding and liquidity position. Relatively conservative management. Modest-size player in a competitive, relatively niche, arena. High fixed-cost base and moderate pre-impairment profitability. Continued pressure on asset quality, in line with peers. The negative outlook reflects our view that asset quality pressure and constrained pre-impairment earnings could continue to hamper the bank's profitability in the next two years. We could lower the ratings on Van Lanschot if loan impairment charges do not look likely to steadily decrease from their elevated 2012 levels. We could also lower the ratings if we see signs that the bank's capitalization is weakening, leading us to revise our projections for the bank's RAC ratio to around 10% or less. This could occur if
