S&P Global Ratings To Assess Impact On Mitsubishi UFJ Financial Group If It Acquires Bank Danamon

TOKYO (S&P Global Ratings) Nov. 10, 2017--S&P Global Ratings today said that it would assess the ratings impact on Mitsubishi UFJ Financial Group Inc. (MUFG; A/Negative/--) and companies under the group if MUFG reaches a reported deal to make PT Bank Danamon Indonesia Tbk. an equity-method affiliate. In particular, we would examine the details of the acquisition scheme for the major Indonesia-based bank. We would also assess MUFG's prospective risk-adjusted capital (RAC) ratio and the overall group's prospective proportions of overseas exposures. This is because we believe MUFG's current credit quality is under downward pressure from rising exposure to countries and areas we deem as having high economic risk and from uncertainties over whether its RAC ratio would improve. MUFG

...TOKYO (S&P Global Ratings) Nov. 10, 2017--S&P Global Ratings today said that it would assess the ratings impact on Mitsubishi UFJ Financial Group Inc. (MUFG; A/Negative/--) and companies under the group if MUFG reaches a reported deal to make PT Bank Danamon Indonesia Tbk. an equity-method affiliate. In particular, we would examine the details of the acquisition scheme for the major Indonesia-based bank. We would also assess MUFG's prospective risk-adjusted capital (RAC) ratio and the overall group's prospective proportions of overseas exposures. This is because we believe MUFG's current credit quality is under downward pressure from rising exposure to countries and areas we deem as having high economic risk and from uncertainties over whether its RAC ratio would improve. MUFG says the reports are not based on any of its announcements. Several media reports said Thursday that MUFG has decided to start talks to invest about Ñ200 billion for a 40% stake in Bank Danamon with the aim of acquiring...

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