BTMU Sydney Branch’s Australian Dollar-Denominated Transferable Certificates Of Deposit Rated 'A+'

TOKYO (Standard & Poor's) March 8, 2013--Standard & Poor's Ratings Services today assigned its 'A+' rating to the Australian dollar-denominated transferable certificates of deposit with floating rates issued by Bank of Tokyo-Mitsubishi UFJ Ltd.'s (BTMU) Sydney branch.

The ratings on BTMU (A+/Stable/A-1) reflect its sound financial profile on a consolidated basis, in addition to the consolidated financial profile and market position of its parent, Mitsubishi UFJ Financial Group Inc. (MUFG; A/Stable/--), Japan's largest banking group. The ratings are attributed to BTMU's close business links with affiliated group companies and MUFG's control of the group's organizational structure and capital allocation.

MUFG is Japan's largest financial group, with consolidated net assets of ¥219 trillion at the end of fiscal 2011 (ended March 31, 2012). The company boasts a strong business base in the domestic market, supported by the integrated financial services that it provides to individual and institutional investors, small and midsize enterprises (SMEs), and large corporations. MUFG has strong business relationships with large corporations, mainly in the Mitsubishi group and overseas. Although the profitability of BTMU and MUFG falls below that of overseas major financial institutions, it is in line with the average among domestic major banks. Core profits at BTMU and MUFG are highly stable by international comparison, supported by good-quality assets. Capitalization at BTMU and MUFG are favorable in both qualitative and quantitative terms compared to domestic megabanks, and in line with the capitalization of similarly rated overseas financial institutions. BTMU and MUFG hold stable and ample liquidity, supported by their strong deposit base that is diversified into small lots.