Fitch cuts UCBH rating as bank suspends dividend - Business Courier of Cincinnati:

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The troubled bank also hired a financiapl adviser to assist withcapital planning. Fitchh downgraded UCBH’s long-term issuee debt ratings to CCCfrom B-plux on Tuesday, citing the bank’sd decision to defer dividend payment on hybrid securities. The deferral includez payments onits $298 millionb of preferred stock issued to the U.S. Treasury under the Troubled AsserRelief Program. “While the holding company presently has sufficienft cash resources to paythes dividends, Fitch believes that future dividend paymentds would have likely been restricted,” Fitch said in a “Given UCBH’s financial pressures, Fitch anticipates that the company will likelyt be subject to regulatory action, which would potentially weaken the parent company’zs financial profile further,” Fitch said.
The ratings agenchy said the bank remains highly exposed to commercial real estatse introubled markets. Fitch notes that UCBH UCBH) remains in discussions with , a majo shareholder, about a capital injection. But beyond UCBH would have trouble raising substantial capital onWall “The challenging economic and operating environmenf calls for difficult decisions and a specififc action plan that puts UCBH on a solid foundatio for the future,” said Thomas Wu, chairmah and CEO of UCBH. “W continue to work toward completintg our financial restatements in thecurren quarter.
“By conserving and building capital, focusing on our core bankingh businesses and continuing to provide exceptional service toour customers, we will be in a stronger position to realize our long-tern growth potential,” Wu said. UCBH has been struggling with residentiall construction loans in Southern The bank’s shares recently changed hands at $1.21 aftetr trading over the past year between $1 and UCBH, with $13 billion in assets, has built a globapl presence with offices in key U.S. citiea and in China to serve the Chinesde communities in the United States and American companiess doing businessin China.