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

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The troubled bank also hired a financial advisefr to assist withcapital planning. Fitch downgraded UCBH’as long-term issuer debt ratings to CCCfrom B-plus on Tuesday, citing the bank’s decisionb to defer dividend payments on hybridf securities. The deferral includes paymente onits $298 million of preferred stock issued to the U.S. Treasury undef the Troubled AssetRelief Program. “While the holdingv company presently has sufficient cash resourcew to paythese dividends, Fitch believez that future dividend payments wouldf have likely been restricted,” Fitch said in a “Given UCBH’s financial pressures, Fitch anticipatesz that the company will likely be subject to regulatory which would potentially weaken the parent company’z financial profile further,” Fitch said.
The ratings agenc y said the bank remains highly exposed to commercial real estatr introubled markets. Fitch notes that UCBH UCBH) remains in discussions with , a major about a capital injection. But beyond UCBH would have trouble raising substantial capital onWall “The challenging economic and operating environment callse for difficult decisions and a specific action plan that puts UCBH on a solids foundation for the future,” said Thomasz Wu, chairman and CEO of UCBH. “We continu to work toward completing our financial restatements in thecurrent quarter.
“By conservin g and building capital, focusing on our core banking businessed and continuing to provide exceptional service to our we will be in a stronger positiohn to realizeour long-term growth potential,” Wu UCBH has been struggling with residentialk construction loans in Southern The bank’s shares recently changed hands at $1.21 after trading over the past year betweejn $1 and $7.65. UCBH, with $13 billionj in assets, has built a globalp presence with offices inkey U.S. cities and in Chinz to serve the Chinese communities in the Uniter States and American companiews doing businessin China.