The ratings on Mitsubishi UFJ Financial Group Inc. (MUFG; A/Stable/--) reflect MUFG's consolidated financial profile and market position as Japan's largest financial group; a strong business base in the domestic market; ample liquidity supported by its banking subsidiaries' stable deposit base, which is diversified into small lots; and higher capital quality than other major domestic banks. The ratings also reflect potential support from the government in the event of an emergency, given MUFG's importance in the domestic financial system. At the same time, the ratings are tempered by MUFG's lower profitability than its international peers, although it is average compared to the major domestic banking groups. In addition, the ratings are constrained by the weak financial performance of the consumer
