...Capital Key Ratings Driver: Capital is a primary rating strength for MUFG Americas Holdings Corporation (MUAH, or the company). Tangible common equity, Fitch core capital and regulatory capital levels all rank at the top of the large regional peer group. MUAH maintains strong capital primarily from retained earnings growth, capital contributions from the parent in the past, as well as the absence of any dividend payments to the parent. Solid Asset Quality Throughout the Cycle: MUAH's nonperforming assets and net charge-offs remain low. The company maintained relatively strong asset quality metrics throughout the financial crisis. In particular, MUAH's residential portfolio significantly outperformed the sector due to maintenance of conservative underwriting standards. Weak Earnings Offset by Capital: MUAH's financial performance lags these other large regional banks in profitability, cost of funds and efficiency. However, these weaknesses are mitigated by the company's strong capital position...
