Fitch rates MUFG notes A

Fitch Ratings said it assigned a final rating of A to Mitsubishi UFJ Financial Group, Inc.’s (MUFG) $5 billion senior unsecured notes.

The notes are expected to count towards MUFG’s total loss-absorption capacity requirements, the agency said.

The senior bonds will constitute direct, unconditional, unsecured and unsubordinated general obligations of MUFG and rank pari passu with all of its other unsecured debt, the agency said.

The notes will be structurally subordinated to the liabilities of MUFG’s subsidiaries, including Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust & Banking Corp., Fitch said.

The proceeds will be down-streamed in full to the operating subsidiaries as obligations that rank pari passu other senior unsecured obligations of the operating subsidiaries, the agency said.

The ratings reflect the banking group’s strong and very sound domestic franchises, solid liquidity profiles in yen, sound asset quality and adequate capital positions, Fitch said.

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