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, and the untested nature of its European banking strategy. The ratings on ABE are on a par with those on senior debt that AXA's core operating companies would issue. ABE is a core component of AXA group's customer-driven strategy in Belgium--providing financial protection to individuals and
