The ratings on Belgium-based Fortis Bank reflect the institution's strong position in the Benelux banking market, its good asset quality, satisfactory profitability, and adequate capitalization. They also factor in Fortis Bank's position as a core member of Fortis, a Belgian-Dutch banking and insurance group. Those positive factors are somewhat offset by the bank's sensitivity to interest rate fluctuations, the high level of competition in Belgian banking, and Fortis' Netherlands-based insurance division Fortis ASR's moderate operating performance. Fortis Bank is the largest bank in Belgium, the second-largest banking group in Luxembourg, and the fourth-largest banking group in the Netherlands. The bank has a moderate risk profile; its activities and assets are concentrated in its home market, and the bulk of its
