TEXT-S&P: Bank of Tokyo-Mitsubishi UFJ Straight Bonds Rated 'A+'

Thu Jan 17, 2013 1:21am EST

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(The following was released by the rating agency)

TOKYO (Standard & Poor's) Jan. 17, 2013--Standard & Poor's Ratings Services today assigned its 'A+' long-term debt ratings to the 139th to 141st series of domestic unsecured straight bonds issued by Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU; A+/Stable/A-1) (see list below).

The ratings on BTMU reflect its sound financial profile on a consolidated basis, in addition to the consolidated financial profile and market position of its parent, Mitsubishi UFJ Financial Group Inc. (MUFG; A/Stable/--), Japan's largest banking group. The ratings also reflect BTMU's close business links with affiliated group companies and MUFG's control of the group's organizational structure and capital allocation.

MUFG is Japan's largest financial group, with consolidated net assets of JPY219 trillion at the end of fiscal 2011 (ended March 31, 2012). The company boasts a strong business base in the domestic market, supported by the integrated financial services that it provides to individual and institutional investors, small and midsize enterprises, and large corporations. MUFG has strong business relationships with large corporations, mainly in the Mitsubishi group. The group also has a strong overseas presence. Although the profitability of BTMU and MUFG falls below that of overseas major financial institutions, it is in line with the average among domestic major banks. Core profits at BTMU and MUFG are stable by international comparison, supported by good-quality assets. Capitalization at BTMU and MUFG are favorable in both qualitative and quantitative terms compared to domestic megabanks, and in line with the capitalization of similarly rated overseas financial institutions. BTMU and MUFG hold stable and ample liquidity, supported by a strong deposit base that is diversified into small lots.

RATINGS LIST

Ratings Assigned

Issue Rating

139th series of unsecured straight bonds:

JPY10 bil. 0.16% bonds due Jan. 22, 2016 A+

140th series of unsecured straight bonds:

JPY40 bil. 0.24% bonds due Jan. 23, 2018 A+

141st series of unsecured straight bonds:

JPY10 bil. 0.82% bonds due Jan. 23, 2023 A+

RELATED CRITERIA AND RESEARCH

Banks: Rating Methodology And Assumptions, Nov. 9, 2011

Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

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