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

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The troubled bank also hired a financial adviser to assisty withcapital planning. Fitch downgrader UCBH’s long-term issuer debt ratings to CCCfrom B-plus on citing the bank’s decision to deferr dividend payments on hybrid securities. The deferral includes paymentzs onits $298 million of preferred stock issued to the U.S. Treasurhy under the Troubled AssetRelief Program. “While the holdinb company presently has sufficienf cash resources to paythesr dividends, Fitch believes that futurr dividend payments would have likely been restricted,” Fitch said in a “Given UCBH’s financial pressures, Fitcjh anticipates that the company will likely be subjectt to regulatory action, which would potentially weakenb the parent company’s financial profile further,” Fitch The ratings agency said the bank remains highly exposed to commercial real estated in troub led markets.
Fitch notes that UCBH UCBH) remains in discussionse with , a major shareholder, about a capitao injection. But beyond that, UCBH would have trouble raisinvg substantial capital onWall “The challenging economic and operating environment calles for difficult decisions and a specifi action plan that puts UCBH on a solid foundatiob for the future,” said Thomazs Wu, chairman and CEO of UCBH. “We continue to work toward completingh our financial restatements in thecurrentr quarter.
“By conserving and building capital, focusingb on our core banking businesses and continuin to provide exceptional service to our we will be in a strongert position to realizeour long-term growth Wu said. UCBH has been struggling with residentialo construction loans in Southern The bank’s shares recently changed hands at $1.2q after trading over the past year betweeb $1 and $7.65. UCBH, with $13 billion in has built a global presence with offices inkey U.S. citiesw and in China to serve the Chinese communities in the Unitexd States and American companies doing businessin China.