Jan. 28 (Bloomberg) -- Fortis, Belgium's biggest financial- services company, rose the most in almost five years in Brussels trading after saying it meets all capital requirements following possible subprime-mortgage losses and won't raise cash.

Fortis climbed as much as 15 percent before closing 8.1 percent higher, up 1.07 euros to 14.33 euros, the stock's biggest percentage gain since April 2003. The company said yesterday it will meet capital and solvency requirements even when its holdings in subprime collateralized debt obligations are valued under ``very stringent scenarios.''

The company doesn't need to sell common stock or dilutive equity-linked securities and isn't considering such a sale, it said. Fortis dropped to the lowest since August 2002 on Jan. 25 after Dresdner Kleinwort cut its recommendation on the stock to ``add'' from ``buy'' on concern that the bank may have further writedowns on subprime-related assets and might need to increase its capital by as much as 10 percent.

``This is a very comforting statement, albeit unfortunately a bit late,'' Ton Gietman, an Amsterdam-based analyst at Petercam, wrote in an investors note. ``It is good to know that Fortis claims not to have a `capital issue.''' Gietman rates Fortis a ``hold.''

Fortis, based in Brussels and the Dutch city of Utrecht, was formed in 1990 through the merger of Dutch insurer NV Amev, Belgian insurer AG Group and Dutch bank VSB. The company plans to keep the cash dividend at the same level as last year and pay out a final 2007 dividend of 59 cents a share, Fortis said yesterday.

Full-Year Forecast

The world's largest banks and securities firms, including New York-based Merrill Lynch & Co. and Citigroup Inc. have recorded $133 billion of writedowns and credit losses in 2007 and 2008, largely because of declines in the value of subprime mortgage- related debt.

If Fortis applied its standard model for valuing impairments, the calculation would result in a full-year profit for Fortis of about 4 billion euros ($5.9 billion) before divestments, the company said. The lender in November had said annual profit on that basis would be 4.2 billion euros.

``Fortis issued a small profit warning due to its subprime exposure,'' Thomas Nagtegaal, an Amsterdam-based analyst at ABN Amro Bank NV, wrote in a note. Nagtegaal doesn't rate Fortis.

Liliane Tackaert, a Brussels-based spokeswoman for Fortis, said the forecast hasn't changed as the new number is a ``rough estimate'' of 2007's profit.

Profit would be 1 billion euros higher if the sale last year of its stake in the CaiFor insurance joint venture with La Caixa, Spain's largest savings bank, were to be included in the calculation, the company said.

`Fully on Track'

The company yesterday said it's ``fully on track'' to complete its 24 billion-euro financing plan for last year's acquisition of ABN Amro Holding NV's Dutch consumer-banking arm and its asset- management and private-banking units. Preparation to integrate the businesses is progressing according to plan, Fortis said.

``The underlying performance of Fortis's stand-alone businesses and the acquired ABN Amro activities have demonstrated their resilient nature in the fourth quarter of 2007 and also in the first weeks of 2008,'' Fortis said.

Edinburgh-based Royal Bank of Scotland Group Plc, Spain's Banco Santander SA and Fortis last year bought Amsterdam-based ABN Amro in the biggest financial-services takeover.

To contact the reporter on this story: Martijn van der Starre in Amsterdam at vanderstarre@bloomberg.net

Last Updated: January 28, 2008 11:43 EST