Moody's cuts Tokai Preferred issue to Caa1

Moody's Investors Service said it downgraded the preferred stock rating of OPCO preferred securities issued by Tokai Preferred Capital Inc., a subsidiary of UFJ Bank Ltd., to Caa1 from Ba3.

The outlook is stable.

The downgrade of the preferred stock rating for Tokai Preferred Capital to Caa1 was prompted by UFJ Holdings Inc.'s announcement that it would suspend its forthcoming payment on the preferred dividends of Tokai.

The Caa1 preferred stock rating of Sanwa International Finance Trust is unaffected. All other ratings of UFJ Bank are also unaffected.

At the same time, the ratings of all other OPCO preferred securities, including Mizuho JGB Investments LLC's Baa1 stock rating, Mizuho Preferred Capital Company LLC's Baa1 stock rating and SB Treasury Company LLC's Baa1 stock rating, are affirmed with stable outlooks.

This affirmation is based on Moody's view that these banks have available distributable profits and their fundamentals have stabilized and are improving.

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