March 8, 2012 / 9:21 AM / in 7 years

TEXT-S&P rates Bank of Tokyo-Mitsubishi UFJ Syd branch's AUD note

(The following statement was released by the rating agency)

March 08 - Standard & Poor’s Ratings Services said today that it had assigned its ‘A+’ long-term debt rating to an Australian dollar-denominated senior note issued by the Sydney branch of Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU; A+/Stable/A-1).

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 are attributed to 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 JPY206 trillion at the end of fiscal 2010 (ended March 31, 2011). 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 (SMEs), and large corporations. MUFG has strong business relationships with large corporations, mainly in the Mitsubishi group and overseas. 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 highly 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 their strong deposit base that is diversified into small lots.

NEW RATING

Issue Rating

A$300 mil. floating rate notes due March 16, 2015 A+

RELATED CRITERIA AND RESEARCH

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

Principles Of Credit Ratings, Feb. 16, 2011

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