...Strengths: Weaknesses: + 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 (ROA) compared with global peers due to low net interest margins on domestic lending + Susceptibility to market volatility because of its large investment portfolio, which, as at other Japanese banks, contains bonds, equity, and other securities Outlook S&P Global Ratings' outlooks on the long-term issuer credit ratings on Mitsubishi UFJ Financial Group Inc. (MUFG) and its core subsidiaries including core operating banks are positive. The outlooks reflect a more than one-in-three chance that we could upgrade them in the next two years. The outlook on our long-term sovereign rating on Japan is positive and we view the group's unsupported GCP as stable. Accordingly, it has become more likely that we could incorporate government...
