Strong market position as the largest banking group in Japan Strong funding base and liquidity, backed by its banking subsidiaries' stable deposit base, which is diversified into small lots Stronger capitalization than its domestic peers with an RAC ratio that is likely to remain at an adequate level (above 7%) in our projection Modest profitability in terms of ROA compared with its global peers, reflecting low net interest margin at its major operating banks--Bank of Tokyo-Mitsubishi UFJ Ltd. and Mitsubishi UFJ Trust and Banking Corp. Susceptibility to market volatility, given the high ratio of JGBs and other securities to total assets The stable outlook reflects Standard&Poor's Ratings Services' base-case view that Mitsubishi UFJ Financial Group Inc. (MUFG) will
