Fitch assigns MUFG notes A-

Fitch Ratings said it rated Mitsubishi UFJ Financial Group, Inc.'s €500 million of six-year callable senior unsecured notes A-.

“The note rating is aligned with MUFG's long-term issuer default rating (IDR), despite the note's structural subordination features. Fitch aligns MUFG's holding-company senior debt ratings and IDRs with the IDRs of its operating companies, to reflect Fitch's view of consolidated supervision and that the holding company's failure and senior-level default risk are similar to that of wholly owned operating banks, with all entities being eligible for pre-emptive state support,” the agency said in a press release.

“The notes will count towards its total loss-absorbing capacity (TLAC) requirements, as they will be structurally subordinated to the liabilities of MUFG's subsidiaries. MUFG met the 16% minimum total external TLAC capital ratio requirement, which excludes buffers for global systemically important banks, capital conservation and countercyclical capital, as of end-March 2021,” Fitch said.

The proceeds may be distributed to the core operating subsidiaries.

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