The ratings on Belgium-based Fortis Bank, and core subsidiaries Fortis Bank Nederland (Holding) N.V. and Fortis Banque Luxembourg S.A., primarily reflect Fortis Bank's strong position in the Benelux banking market, good asset quality, and satisfactory profitability. 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, which includes diversifying outside its home market. Fortis Bank is the largest bank in Belgium, the second-largest in Luxembourg, and the fourth-largest in the Netherlands. Since early 2005, Fortis group management has been engaged in a gradual transformation
