Fitch Ratings has placed the long-term and individual ratings of UnionBanCal Corporation (UB) and its bank subsidiary, Union Bank, N.A., on Rating Watch Negative. The Negative Watch on UB's long-term ratings reflects the Negative Watch placed on the long-term ratings of UB's parent company, Bank of Tokyo Mitsubishi UFJ (BTMU). Since UB's long-term ratings incorporate the support provided from its parent company, the actions taken on BTMU will impact those of UB.
UB's individual rating, which does not consider support, is higher than that of its parent, BTMU, given the company's relatively solid credit fundamentals and its strong regional franchise. Nonetheless, UB is facing its own earnings and credit challenges, which could impact the company's individual rating. Fitch expects to resolve the Negative Watch Status of UB in the coming months.
Fitch has placed the following ratings on Rating Watch Negative:
UnionBanCal Corporation
--Long-term Issuer Default Rating (IDR) 'A+';
--Subordinated debt 'A';
--Trust preferred stock 'A';
--Individual 'B'.
Union Bank, N.A.
--Long-term IDR 'A+';
--Long-term deposits 'AA-';
--Senior debt 'A+';
--Subordinated debt 'A';
--Individual 'B'.
Fitch has affirmed the following ratings:
UnionBanCal Corporation
--Short-term IDR at 'F1';
--Support 1.
Union Bank, N.A
--Short-term IDR at 'F1';
--Long-term debt guaranteed by TLGP affirmed at 'AAA';
--Short-term debt guaranteed by TLGP affirmed at 'F1+';
--Short-term debt at 'F1';
--Short-term Deposits at 'F1';
--Support 1.
UnionBanCal Commercial Funding
--Short-term IDR at 'F1';
--Short-term debt at 'F1'.
--Support 1.
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.
Contacts:
Fitch Ratings, New York
Kenneth Ritz, 212-908-0368
John
Mackerey, 212-908-0366
or
Media Relations:
Cindy Stoller,
212-908-0526
Email: cindy.stoller@fitchratings.com