Standard & Poor's Ratings Services on March 30 affirmed itsA/A-1 issuer credit ratings on New York-based MUFG Americas Holdings Corp. and its A+/A-1 issuer creditratings on MUFG Union Bank NA.
The ratings outlooks on both entities remain negative, mirroringthe rating agency's outlook on their parent company, Mitsubishi UFJ Financial Group Inc.
According to S&P credit analyst Barbara Duberstein, MUFGAmericas Holdings' risks "have incrementally increased and, therefore, itsrisk profile is no longer superior to its U.S. regional bank peers." As a result,the rating agency lowered the company's operating company-level stand-alone creditprofile to "a-" from "a."
S&P also expects a slight increase in risks for the consolidatedcompany because of MUFG Americas Holdings' plannedtransformation into an intermediate holding company on July 1, at whichtime MUFG Americas Holdings will acquire the group's midsize U.S. broker/dealer,Mitsubishi UFJ Securities USA.
Moreover, S&P expects that MUFG Americas Holdings will experiencesome asset-quality deterioration in 2016 given its moderate exposure to energy loans.
S&P Ratings and GlobalMarket Intelligence are owned by McGraw Hill Financial Inc.