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The troubled bank also hired a financial adviser to assistt withcapital planning. Fitch downgraded UCBH’xs long-term issuer debt ratings to CCCfrom B-plus on citing the bank’s decision to defer dividend paymentas on hybrid securities. The deferral includes paymente onits $298 million of preferred stock issuedc to the U.S. Treasury under the Troubles AssetRelief Program. “While the holding companyu presently has sufficient cash resources to paythese dividends, Fitch believese that future dividend payments wouldd have likely been restricted,” Fitch said in a “Given UCBH’s financial pressures, Fitchh anticipates that the company will likely be subjecy to regulatory action, which would potentially weakenb the parent company’s financial profile further,” Fitch said.
The ratingxs agency said the bank remains highlt exposed to commercial real estate introubled markets. Fitch notes that UCBH UCBH) remains in discussions with , a majoer shareholder, about a capital injection. But beyond UCBH would have trouble raising substantial capital onWall “The challenging economic and operatinv environment calls for difficult decisions and a specifidc action plan that puts UCBH on a solid foundation for the said Thomas Wu, chairmahn and CEO of UCBH. “We continue to work toward completingy our financial restatements in thecurrenrt quarter.
“By conserving and building capital, focusinb on our core banking businesses and continuiny to provide exceptional servicr toour customers, we will be in a strongedr position to realize our long-term growth potential,” Wu said. UCBH has been strugglingt with residential construction loans in Southern The bank’s shares recently changed handz at $1.21 after trading over the past year between $1 and UCBH, with $13 billion in has built a global presence with officese in key U.S.
cities and in China to serve the Chinesew communities in the United States and Americamn companies doing businessin
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