Mitsubishi UFJ Financial Group Inc. (Holding Company); MUFG Bank Ltd. (Lead Bank)

The stable outlooks on the long-term issuer credit ratings on MUFG and its core subsidiaries, including core operating banks, reflect our view that the group will likely maintain its solid business base, strong funding, and ample liquidity in the next two years. The group's stand-alone credit profile (SACP), which excludes extraordinary government support, is relatively high compared with our sovereign rating on Japan. The outlooks also incorporate our view that the creditworthiness of companies in the group will remain stable in the next two years when incorporating the likelihood of extraordinary government support. We believe the group's profitability and asset quality will come under pressure if the domestic and global economies deteriorate beyond our assumptions. However, we expect the likelihood

...We expect MUFG group to maintain its strong business and favorable financial position, despite any changes to the business environment in Japan, the U.S., and other economies in which the group operates. As Japan's largest banking group, Mitsubishi UFJ Financial Group Inc. (MUFG) has a leading business presence at home and overseas. Its profitability has improved somewhat following restructuring in recent years. We expect the group to now focus on growth strategies in line with its medium-term plan starting this fiscal year. Accordingly, we believe it will likely remain resilient to ongoing competition in Japan's banking market amid the rising interest rate environment, as well as to uncertainty in the domestic and the global economy....

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