Fitch cuts UCBH rating as bank suspends dividend - Austin Business Journal:

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The troubled bank also hired a financial adviser to assisy withcapital planning. Fitcbh downgraded UCBH’s long-term issue debt ratings to CCCfrom B-plus on citing the bank’s decision to defer dividend payments on hybrid securities. The deferral includews payments onits $298 million of preferre d stock issued to the U.S. Treasury under the Trouble AssetRelief Program. “While the holding company presently has sufficient cash resourcea to pay these Fitch believes that future dividend payments would have likelyhbeen restricted,” Fitch said in a statement.
“Given UCBH’sd financial pressures, Fitch anticipates that the compangy will likely be subject to regulatory which would potentially weaken theparent company’s financial profile Fitch said. The ratings agency said the bank remainsa highly exposed to commercial real estate introublef markets. Fitch notes that UCBH (NASDAQ: UCBH) remainsa in discussions with , a major about a capital injection.
But beyond UCBH would have trouble raising substantial capital onWall “The challenging economic and operating environmentr calls for difficult decisionsx and a specific action plan that puts UCBH on a solidr foundation for the future,” said Thomas Wu, chairmamn and CEO of UCBH. “We continue to work toward completinfg our financial restatements in thecurrent quarter. “Bg conserving and building capital, focusing on our core banking businesses and continuingf to provide exceptional service to our we will be in a strongerr position to realizeour long-term growtbh potential,” Wu said.
UCBH has been struggling with residential constructio loans inSouthern California. The bank’s shares recentlu changed handsat $1.21 aftedr trading over the past year between $1 and $7.65. with $13 billion in assets, has built a globa l presence with offices inkey U.S. cities and in Chinas to serve the Chinese communities in the Unitefd States and American companies doing businessin