Fitch affirms UBS

Fitch Ratings said it affirmed UBS AG's and its subsidiary UBS Ltd.'s long-term issuer default ratings at AA with negative outlooks.

Fitch affirmed short-term issuer default ratings at F1+, individual rating at B, support ratings at 1 and support floor at A-. Subordinated debt and hybrid debt issued by UBS and its group funding vehicles were affirmed at AA-.

UBS said it would write down its U.S. subprime holdings by a further $12 billion on top of the $4.4 billion writedowns taken in the third quarter and that an additional $2 billion will be taken on other U.S. residential mortgage-related positions. The result of these additional writedowns is a fourth-quarter loss of CHF 12.5 billion and a net loss for the year of CHF 4.4 billion.

"The additional writedowns announced by UBS today are materially higher than the guidance from the group on 10 December 2007 and reflect ongoing valuation challenges and a still difficult market environment," Gordon Scott, managing director in Fitch's financial institutions group, said in a written statement.

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