Moody's on Oct. 11 upgraded MUFG Americas Holdings Corp.'s issuer rating to A2 from A3 and its senior unsecured shelf and subordinate shelf ratings to (P)A2 from (P)A3.
Subsidiary MUFG Union Bank NA's subordinate bank note program was upgraded to (P)A2 from (P)A3, and its long-term counterparty risk assessment to Aa3(cr) from A1(cr). The bank's issuer rating of A2 and long-term deposit rating of Aa2 were affirmed
The ratings outlook is stable.
Both entities are subsidiaries of Japan's Mitsubishi UFJ Financial Group Inc., and Moody's assumes a "very high probability of support" to MUFG Americas from its parent. MUFG Americas' conservative asset risk and good capital position offset its weak profitability and higher level of wholesale funding, according to the rating agency.