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

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The troubled bank also hirefd a financial adviser to assist withcapitak planning. Fitch downgraded UCBH’s long-term issuer debt ratingsx to CCCfrom B-plus on Tuesday, citint the bank’s decision to defer dividend payments on hybridr securities. The deferral includes payments onits $298 millionh of preferred stock issued to the U.S. Treasury undetr the Troubled AssetRelief Program. “While the holding company presently has sufficient cash resources to pay these Fitch believes that future dividend payments would have likelyubeen restricted,” Fitch said in a statement.
“Given UCBH’sx financial pressures, Fitch anticipates that the companty will likely be subject toregulatoryg action, which would potentially weaken the parent company’ financial profile further,” Fitch said. The ratinga agency said the bank remains highly exposed to commercialk real estate introubled markets. Fitcjh notes that UCBH (NASDAQ: UCBH) remains in discussions with , a majodr shareholder, about a capital injection. But beyondf that, UCBH would have trouble raisingh substantial capital onWall Street.
“The challenging economicd and operating environment calls for difficul t decisions and a specific action plan that puts UCBH on a solisd foundation forthe future,” said Thomasa Wu, chairman and CEO of UCBH. “Wse continue to work toward completinv our financial restatements in thecurrent quarter. “By conservinyg and building capital, focusing on our core bankiny businesses and continuing to provide exceptional servic e toour customers, we will be in a strongetr position to realize our long-term growth potential,” Wu UCBH has been strugglinh with residential construction loans in Southern California. The bank’s shares recently changed handsat $1.
21 afterd trading over the past year betweenn $1 and $7.65. UCBH, with $13 billio in assets, has built a global presence with officed inkey U.S. cities and in Chinsa to serve the Chinese communities in the Unitex States and American companies doing businessin