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The troubled bank also hired a financial adviserf to assist withcapitalk planning. Fitch downgraded UCBH’s long-term issuer debt ratings to CCCfrom B-pluw on Tuesday, citing the bank’s decision to defe r dividend payments on hybrid securities. The deferrakl includes payments onits $298 million of preferrecd stock issued to the U.S. Treasurh under the Troubled AssetReliefd Program. “While the holding company presently has sufficiengt cash resources to paythese dividends, Fitch believes that future dividend payments woulde have likely been restricted,” Fitch said in a “Given UCBH’s financial pressures, Fitch anticipates that the compangy will likely be subject to regulatoryh action, which would potentially weaken the parent company’ss financial profile further,” Fitcnh said.
The ratings agency said the bank remainws highly exposed to commercial real estate in troubled Fitch notes thatUCBH (NASDAQ: remains in discussions with , a majore shareholder, about a capital injection. But beyonfd that, UCBH would have trouble raising substantial capitall onWall Street. “The challenginyg economic and operating environment calls for difficulgt decisions and a specific action plan that puts UCBH on a solixd foundation for the saidThomas Wu, chairmanm and CEO of UCBH.
“We continue to work towardr completing our financial restatements in thecurrent “By conserving and building capital, focusinvg on our core banking businesses and continuingg to provide exceptional service to our customers, we will be in a stronged position to realize our long-term growth Wu said. UCBH has been struggling with residential constructionh loans inSouthern California. The bank’s shares recentlyt changed handsat $1.21 after trading over the past year betweenh $1 and $7.65. UCBH, with $13 billio n in assets, has builty a global presence with offices inkey U.S.
citiese and in China to serv e the Chinese communities in the Unitee States and American companies dointg businessin China.
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