Moody's rates BTMU Singapore unit's USD notes stable

It has assigned A1 ratings.

Moody's Japan K.K. has assigned P)A1/(P)Prime-1 ratings to The Bank of Tokyo-Mitsubishi UFJ, Ltd. Singapore Branch's USD 5 billion certificates of deposit (CD) program, through which it can issue senior unsecured CD.

The rating outlook is stable.

Moody's has also assigned long-term and short-term Counterparty Risk Assessments of A1(cr) and P-1(cr) to BTMU Singapore Branch, in line with Moody's bank rating methodology.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU, deposits A1/senior unsecured A1 stable, baseline credit assessment (BCA) a3) is the main operating bank of Mitsubishi UFJ Financial Group, Inc. (MUFG, issuer rating A1/senior unsecured A1 stable).

RATINGS RATIONALE

The A1 ratings of BTMU and Mitsubishi UFJ Trust and Banking Corporation (MUTB deposits A1/senior unsecured A1 stable, BCA a3), collectively referred to as the MUFG banks, incorporate a two-notch uplift from the banks' BCA of a3.

"The two-notch uplift reflects our assumption of a very high likelihood of government support for BTMU and MUTB given the group's importance to Japan's financial system as the largest financial group by total assets," said Moody's.

The BCA and the long-term ratings of the two MUFG banks are equalized, based on the rating agency's assessment that: (1) they are closely interconnected and are both under the management of MUFG; (2) their capital management is centralized at the holding company level; and (3) they have close inter-bank support relationships.

Moreover, the MUFG banks' BCAs and long-term ratings reflect our overall assessment of MUFG on a group consolidated basis. At end-March 2016, the MUFG banks comprised approximately 80% of MUFG's consolidated assets.

The Bank of Tokyo-Mitsubishi UFJ, Ltd., headquartered in Tokyo, is one of the largest banks in Japan.