The ratings on Belgium-based Fortis Bank reflect its strong position in the Benelux banking market, good asset quality, satisfactory profitability, and adequate capitalization. They also factor in the bank's position as a core member of Belgian-Dutch banking and insurance group Fortis. These positive factors are somewhat offset by Fortis Bank's limited growth potential and highly competitive core Benelux markets, as well as the Fortis group's still untested growth strategy that includes diversification outside its home market. Fortis Bank is the largest bank in Belgium, the second-largest in Luxembourg, and the fourth-largest in the Netherlands. The bank has a moderate risk profile, concentrates its activities and assets on its home market, and derives the bulk of its revenues from retail and
