Fitch Revises Support Ratings of UnionBanCal Corporation and Union Bank to '1'

Tue Mar 5, 2013 2:43pm EST

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(The following statement was released by the rating agency) NEW YORK, March 05 (Fitch) Fitch Ratings has revised the Support Ratings of UnionBanCal Corporation (UBC) and Union Bank, N.A. (UB) to '1' from '2'. The action follows Fitch's upgrade of the Viability Rating and Long-term Issuer Default Rating (IDR) of UBC's parent, Bank of Tokyo Mitsubishi UFJ (BTMU), to 'A' from 'A-'. (For additional information, please see 'Fitch Upgrades Japanese Mega-Banks' Viability Ratings' dated March 4, 2013.) All other ratings of UBC and UB are unaffected by this action. A complete list of ratings follows at the end of the release. KEY RATING DRIVERS The Support Ratings of UBC and UB have been revised to '1' to reflect the improved ability of BTMU to support its subsidiaries. This is reflected in the upgrade of BTMU's IDR to 'A' and Viability Rating to 'a'. Fitch believes that nothing has changed in the parent's propensity to support UBC or UB. RATING SENSITIVITIES UBC's ratings could potentially be downgraded if BTMU's rating is downgraded to 'BBB+' or lower or if current positive credit trends materially reverse and/or core earnings deteriorate from current levels. Should UBC enter into a material acquisition that adversely impacts leverage or asset quality in the energy portfolio deteriorates, ratings could be downgraded. Fitch does not envision any near-term upside to the company's ratings because of their lofty levels with the large U.S. regional bank peer group. UBC is a $97 billion holding company headquartered in San Francisco and is one of the 20 largest commercial bank holding companies in the U.S. Its bank subsidiary, Union Bank, N.A., is a full service commercial bank. UBC is a wholly-owned subsidiary of the Bank of Tokyo Mitsubishi UFJ, Ltd., which is a subsidiary of Mitsubishi UFJ Financial Group, Inc. Fitch has taken the following rating actions: UnionBanCal Corporation Union Bank, N.A. --Support Rating Revised to '1' from '2'. The following ratings are unaffected by the above actions: UnionBanCal Corporation --Long-term IDR 'A'; Outlook Stable; --Short-term IDR 'F1'; --Viability rating 'a'; --Senior debt 'A'; --Subordinated debt 'A-'; Union Bank, N.A. --Long-term IDR 'A'; Outlook Stable; --Short-term IDR 'F1'; --Viability rating 'a'; --Long-term deposits 'A+'; --Short-term deposits 'F1'; --Senior debt 'A'; --Subordinated debt 'A-'; --Commercial paper 'F1'. Contact: Primary Analyst Ed Thompson Senior Director +1-212-908-0364 Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 Secondary Analyst Jaymin Berg Director +1-212-908-0368 Committee Chairperson Christopher Wolfe Managing Director +1-212-908-0771 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. In addition to the source (s) of information identified in Fitch's Master Criteria, this action was additionally informed by information provided by the company. Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012); --'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012). Applicable Criteria and Related Research Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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.

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