Strong market position as the largest banking group in Japan Strong funding base and liquidity, backed by its banking subsidiaries' stable deposit bases, which are diversified into small lots Modest profitability in terms of return on assets compared with global peers, reflecting low net interest margins 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 Japanese government bonds and other securities to total assets Standard&Poor's Ratings Services' outlooks on the long-term ratings on Mitsubishi UFJ Financial Group Inc. (MUFG) and its core subsidiaries including core operating banks are negative. The outlooks reflect our base-case expectation that there is at least a one-in-three chance that
