Fitch Downgrades UCBH Holdings' IDR to 'B+'; Remains on Watch Negative

NEW YORK--(Business Wire)--
Fitch Ratings has downgraded the long-term Issuer Default Ratings (IDRs) of UCBH
Holdings, Inc. (UCBH) and its bank subsidiary, United Commercial Bank, to 'B+'
and 'BB-', respectively. The ratings remain on Rating Watch Negative. A full
list of ratings appears at the end of this release.

The downgrade reflects the magnitude of credit deterioration in UCBH's loan book
to date, as well as Fitch's expectation for a continued decline in asset
quality. Fitch anticipates that loss rates will remain elevated given the
company's exposure to commercial real estate, particularly its construction
portfolio in the distressed real estate markets of California and Nevada. The
rating action also considers UCBH's weak tangible common equity position
relative to its significant exposure to commercial real estate. While regulatory
capital ratios remain above well capitalized standards, it is largely due to the
significant amount of preferred securities in the capital structure. Further,
the identified material weakness in internal controls regarding the misstatement
of the loan loss allowance raises questions regarding the adequacy of UCBH's
loan loss reserve in light of the deterioration of credit quality.

The Negative Watch considers the likelihood of further credit deterioration
beyond the expectations incorporated in today's rating action, which would
further stress the company's earnings and threaten its capital base. Fitch is
looking for a stabilization in credit quality and for UCBH to sufficiently
augment its capital position, given its credit challenges. To that end, UCBH has
been in discussions with China Minsheng Bank for some time regarding a third
stage investment in the company, which should aid capital levels. Upon
consummation of a third stage investment, China Minsheng Bank would hold a 20%
stake in UCBH. Currently, China Minsheng Bank is a 9.9% owner. However, Fitch
would anticipate UCBH pursuing other capital raising initiatives.

Fitch assigns Recovery Ratings to individual security issues where the IDR of
the issuer is rated in the single-B or below category. As such, Fitch has
assigned a Recovery Rating of 'RR6' to the preferred and trust preferred
securities of UCBH, which implies recovery between 0%-10% on these securities in
the event of failure or default by the issuer.

UCBH is a $13 billion banking company headquartered in San Francisco with
domestic operations in Atlanta, Boston, Houston, New York City and Seattle, and
a growing presence in the greater China region. UCBH focuses on servicing the
major Asian communities in the U.S.

Fitch has downgraded the following ratings:

UCBH Holdings, Inc.

--Long-term IDR to 'B+' from 'BB'; on Rating Watch Negative;

--Preferred Stock to 'CCC/RR6' from 'B+';

--Individual to 'D' from 'C/D'; on Rating Watch Negative.

United Commercial Bank

--Long-term IDR to 'BB-' from 'BB+'; on Rating Watch Negative;

--Long-term Deposits to 'BB' from 'BBB-'; on Rating Watch Negative;

--Short-term Deposits to 'B' from 'F3'; on Rating Watch Negative;

--Individual to 'D' from 'C/D'; on Rating Watch Negative.

UCBH Trust Co.

UCBH Capital Trust I

UCBH Capital Trust II

UCBH Capital Trust III

UCBH Capital Trust IV

UCBH Capital Trust V

UCBH Holdings Statutory Trust I

UCBH Holdings Statutory Trust II

--Trust Preferred Securities to 'CCC/RR6' from 'B+'.

The following ratings remain on Negative Watch:

UCBH Holdings, Inc.

United Commercial Bank

--Short-term IDR 'B'.

Fitch has affirmed the following ratings:

UCBH Holdings, Inc.

United Commercial Bank

--Support at '5';

--Floor at 'NF'.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Kenneth Ritz, 212-908-0368
John Mackerey, 212-908-0366
or
Media Relations:
Brian Bertsch, 212-908-0549
Email: brian.bertsch@fitchratings.com

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