MUFG Securities (Europe) Assigned 'A' Rating; Outlook Positive

  • We regard MUFG Securities (Europe) as a core subsidiary of MUFG because of its close links with the parent company.
  • We believe it is highly likely to receive extraordinary group support in times of need.
  • We are assigning our 'A' long-term issuer credit rating to MUFG Securities (Europe).
  • The outlook is positive, reflecting the positive outlooks on the core banking subsidiaries of MUFG.
TOKYO (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings today said it has 
assigned its 'A' long-term issuer credit rating to Amsterdam-based MUFG 
Securities (Europe) N.V., which Mitsubishi UFJ Financial Group Inc. (MUFG; 
A-/Positive/--) wholly and indirectly owns. The outlook on the long-term 
issuer credit rating is positive.

The rating on MUFG Securities (Europe) reflects our assessment that it is a 
core subsidiary of Japan-based MUFG. We believe MUFG Securities (Europe) will 
be highly likely to receive group support in times of need. We therefore 
equalize our ratings on a core entity with the group credit profile (GCP). As 
such, our rating on MUFG Securities (Europe) is equal to those on MUFG's core 
banking subsidiaries.

MUFG established MUFG Securities (Europe) in Amsterdam to continue providing 
EU clients with access to global financial markets as the U.K. exits the EU. 
The company's business is the same as that of MUFG Securities (EMEA) and it is 
aligned with MUFG's strategy to have an internationally integrated securities 
operation. Although MUFG Securities (Europe) is a start-up, we believe its 
financial, management, and operational ties, including those for risk 
management, indicate its strong link with Mitsubishi UFJ Securities Holdings 
Co. Ltd. and other group members. In addition, the group status of MUFG 
Securities (EMEA) remains core even after MUFG Securities (Europe) begins 
operations, in our view. 

The positive outlook on MUFG Securities (Europe) reflects the positive 
outlooks on the core banking subsidiaries of MUFG. We may upgrade MUFG 
Securities (Europe) if we raise the ratings on the core banking subsidiaries 
of MUFG. Conversely, we may revise down the outlook on the company if we 
revise down the outlooks on the core banking subsidiaries of MUFG. Also, if we 
revise down the group status of MUFG Securities (Europe), we may revise the 
rating. However, we believe our assessment of the group status of MUFG 
Securities (Europe) is unlikely to weaken in the next two years or so.
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