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 and an expected rise in its risk-adjusted capital (RAC) ratio to an adequate level (above 7%) Moderate profitability of its major operating banks--Bank of Tokyo-Mitsubishi UFJ Ltd. and Mitsubishi UFJ Trust and Banking--characterized by low net interest margin Weak financial performance of the consumer finance and credit card businesses run by MUFG's consolidated subsidiary The stable outlook reflects Standard&Poor's Ratings Services' base-case view that Mitsubishi UFJ Financial Group (MUFG) will be able to manage potential credit risks, and the group's risk-adjusted capital (RAC)
