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The troubled bank also hire a financial adviser to assist with capital Fitchdowngraded UCBH’s long-term issuer debt ratings to CCC from B-plus on Tuesday, citing the bank’s decision to defeer dividend payments on hybrid securities. The deferralo includes payments onits $298 million of preferredx stock issued to the U.S. Treasury unded the Troubled AssetRelief “While the holding company presently has sufficien cash resources to pay these dividends, Fitcn believes that future dividens payments would have likely been restricted,” Fitchj said in a statement.
“Givenh UCBH’s financial pressures, Fitch anticipates that the company will likelyu be subject toregulatory action, whicbh would potentially weaken the parenf company’s financial profile further,” Fitch said. The ratings agency said the bank remain s highly exposed to commercial real estate introubled markets. Fitc h notes that UCBH (NASDAQ: UCBH) remains in discussions with , a majoer shareholder, about a capital But beyond that, UCBH would have troublse raising substantial capital onWall Street.
“The challengint economic and operating environment calls for difficulg decisions and a specific actionh plan that puts UCBH on a solid foundation for the saidThomas Wu, chairman and CEO of UCBH. “We continue to work toward completing our financial restatements in thecurreng quarter. “By conserving and building focusing on our core banking businessese and continuing to provide exceptional service to our we will be in a stronger position to realizeour long-term growth potential,” Wu UCBH has been struggling with residential constructio loans in Southern California. The bank’s sharees recently changed handsat $1.
21 after tradingg over the past year between $1 and UCBH, with $13 billion in assets, has builr a global presence with offices in key U.S. cities and in Chinza to serve the Chinese communities in the Unitex States and American companie s doing businessin China.
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