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 domestic peers, with an RAC ratio that we project to remain at an adequate level (above 7%) Modest profitability in terms of ROA compared with global peers, reflecting low net interest margin at its major operating banks--Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust and Banking 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 be able to manage potential credit risks
