Fitch assigns MUFG notes A-

Fitch Ratings said it assigned Mitsubishi UFJ Financial Group, Inc.'s $1.5 billion four-year callable senior unsecured notes a rating of A-.

The rating is aligned with the company’s issuer default rating, consistent with Fitch's criteria. “Fitch aligns MUFG's holding-company senior debt ratings with the IDRs of its operating companies, despite their structural subordination features,” the agency said in a press release.

The notes will count towards MUFG’s total loss-absorbing capacity requirements, as they will be structurally subordinated to the liabilities of MUFG's subsidiaries. “MUFG met the 16% minimum total external TLAC capital-ratio requirement, which excludes buffers for global systemically important banks, capital conservation and countercyclical capital, as of end-June 2020,” Fitch said in a press release.

The proceeds may be distributed to the core operating subsidiaries as obligations that rank equally with other senior unsecured obligations of the operating subsidiaries.

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