Press Releases

New M2M Trade Association to Bring "Internet of Things" to Vertical Markets May 20, 2013 01:51PM

Upsher-Smith Introduces Newly Redesigned Corporate Website May 20, 2013 01:51PM

Governor Jon Huntsman And The Honorable Dennis Blair To Launch A Report On The Theft Of American Intellectual Property May 20, 2013 01:50PM

UBS Announces Redemption of Seven ETRACS ETNs May 20, 2013 01:50PM

NEW YORK--(BUSINESS WIRE)-- UBS AG announced today that it will redeem all of the outstanding securities in each of the series set forth in the following table (collectively, the “Affected Securities”):

Securities			CUSIP
ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN due April 30, 2042			90267L201
ETRACS Monthly 2x Leveraged ISE Cloud Computing TR Index ETN due October 4, 2041			90267E330
Exchange Traded Access Securities (E-TRACS) Short Platinum — Linked to the Inverse Performance of the UBS Bloomberg CMCI Platinum Excess Return due 2018			902641729
ETRACS Next Generation Internet ETN due July 19, 2041			90268A774
ETRACS Monthly 2x Leveraged Next Generation Internet ETN due July 19, 2041			90268A659
ETRACS ISE Solid State Drive Index ETN due September 13, 2041			90268A758
ETRACS Monthly 2x Leveraged ISE Solid State Drive Index ETN due September 13, 2041			90268A741

Terms used but not defined herein shall have the meanings ascribed to such terms in the Affected Securities.

The Call Settlement Date for the Affected Securities shall be June 6, 2013.

With respect to each series of Affected Securities, the amount payable on the Call Settlement Date will be calculated as specified in each of the Affected Securities. UBS AG will pay investors holding Affected Securities as of 5:00 p.m., New York time, on June 6, 2013, the applicable call settlement amount.

About ETRACS

For further information about ETRACS ETNs, go to http://www.etracs.com.

ETRACS, are exchange-traded notes (ETNs), an innovative class of investment products offering access to markets and strategies that may not be readily available to investors, and offer unique diversification opportunities in a number of different sectors. ETNs offer:

• Access to asset classes with historically low correlations to more traditional asset classes
• Convenience of an exchange-traded security
• Transparent exposure to a published index

ETRACS ETNs are senior unsecured notes issued by UBS AG, are traded on NYSE Arca, and can be bought and sold through a broker or financial advisor. An investment in ETRACS ETNs is subject to a number of risks, including the risk of loss of some or all of the investor’s principal, and is subject to the creditworthiness of UBS AG. We urge you to read the more detailed explanation of risks described under “Risk Factors” in the prospectus supplement for the ETRACS ETN.

This material is issued by UBS AG or an affiliate thereof ("UBS"). Products and services mentioned in this publication may not be available for residents of certain jurisdictions. Past performance is not necessarily indicative of future results. Please consult the restrictions relating to the product or service in question for further information. Activities with respect to US securities are conducted through UBS Securities LLC, a US broker/dealer. Member of SIPC (http://www.sipc.org/).

The contents of any website referred to in this communication are not part of, or incorporated by reference in, this communication. UBS has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement for the offerings of the ETRACS ETNs) with the Securities and Exchange Commission (the “SEC”) for the offerings to which this communication relates. Before you invest, you should read these documents and any other documents that UBS has filed with the SEC for more complete information about UBS and the offering to which this communication relates. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus and the applicable prospectus supplement by calling toll-free (+1-877-387-2275).

© UBS 2013. The key symbol, UBS and ETRACS are among the registered and unregistered trademarks of UBS. “ISE Solid State Drive Index™”, ”ISE Cloud Computing™ Total Return Index”, “ISE™®” and “International Securities Exchange®” are trademarks of International Securities Exchange, LLC and have been licensed for use for certain purposes by UBS Securities LLC and its affiliates. The Dow Jones-UBS Commodity IndexesSM are a joint product of DJI OPCO, LLC, a subsidiary of S&P Dow Jones Indices LLC, and UBS Securities LLC, and have been licensed for use. “Dow Jones®”, “DJ”, “UBS”, “Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total ReturnSM”, “Dow Jones-UBS Commodity Index 2 Month ForwardSM”, “Dow Jones-UBS Commodity Index 4 Month ForwardSM”, “Dow Jones-UBS Commodity Index 6 Month ForwardSM”, “Dow Jones-UBS Commodity IndexSM” and “DJ-UBS CI” are trademarks or service marks of Dow Jones Trademark Holdings, LLC and UBS AG, as the case may be. ”UBS Bloomberg Constant Maturity Commodity Index” and “CMCI” are service marks of UBS and/or Bloomberg. Patent Pending. UBS assumes sole responsibility for this material, which has not been reviewed by Bloomberg. S&P is a registered trademark of Standard & Poor’s Financial Services LLC. Other marks may be trademarks of their respective owners. All rights reserved.

Notes to Editors

About UBS

Headquartered in Zurich and Basel, Switzerland, UBS is a client-focused financial services firm that offers a combination of wealth management, asset management and investment banking services on a global and regional basis. By delivering a full range of advice, products and services to its private, corporate and institutional clients, UBS aims to generate sustainable earnings, create value for its shareholders, and become the choice of clients worldwide.

UBS is present in all major financial centers worldwide. It has offices in over 50 countries, with about 36% of its employees working in the Americas, 35% in Switzerland, 17% in the rest of Europe and 12% in Asia Pacific. UBS employs about 62,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

More information at the site of the bank: www.ubs.com

www.ubs.com/media

UBS AGMedia EnquiriesMegan Stinson, 212-713-1302orNew York:Judi Flynn-Echeverria, 917-902-9726

Source: UBS AG

Fitch Expects to Rate Red de Carreteras de Occidente's Sr Secured Notes 'BBB-'; Outlook Stable May 20, 2013 01:50PM

MONTERREY, Mexico--(BUSINESS WIRE)-- Fitch Ratings expects to rate Red de Carreteras de Occidente, S.A.B. de C.V.'s (RCO) up to MXN10,000 million senior secured notes 'BBB-'. The Rating Outlook is Stable.

At the same time, Fitch affirms the MXN8,126 million senior secured notes rating at 'AAA(mex)', Stable Outlook; the notes were placed in the Mexican market in September 2012. The 2012 notes benefit from a limited guarantee from Banobras.

KEY RATING DRIVERS

DIVERSIFIED AND STRATEGICALLY LOCATED ASSETS: The company's pool of toll roads are located in one of Mexico's most dynamic regions, which accounts for around 15% of national GDP. They are part of the diversified system of trunk routes that serve major industrial centers and cities, and that connect the two largest cities in Mexico. Historical performance since the early 1990s has been positive and has been resilient to economic downturns, experiencing just slight decreases even during deep crises.

TIMELY TOLL RATE INCREASES: Toll rates can be increased annually with inflation, while additional increases can be approved whenever Mexico's Consumer Price Index (CPI) exceeds 5% in a given year. This feature is crucial, especially since a portion of the rated debt is linked to inflation. Tolls have historically been adjusted in a timely manner.

WELL-MAINTAINED INFRASTRUCTURE: The 470 miles of the six asphalt roads are in good physical condition having been upgraded under the terms of the concession agreement. Since 2008, RCO has invested close to MXN2.6 billion in capital expenditures. Pursuant to the agreement, the company has to invest in additional mandatory roadway and network improvements, of which MXN1.1 billion has already been invested. The remaining investment has already been funded in a separate trust.

STANDARD DEBT PROTECTIONS; REFINANCING RISK REMAINS: A large portion of the initial 2007 debt is due between 2014 and 2018. RCO's flexibility to execute refinancings in more digestible amounts over a few years is a partial mitigant to this risk. The rated structure has distribution triggers and reserve accounts that are in line with industry standards. Denomination in MXP at a fixed interest rate eliminates variable-rate risk.

FINANCIAL RESILIENCE UNDER STRESS CONDITIONS: Even under harsh scenarios, the debt service coverage profile (including all current and proposed bonds) is robust and growing. Fitch's base case resulted in a minimum debt service coverage ratio (DSCR) of 1.19x that averages 2.03x from 2013 to 2032, and loan life coverage ratio (LLCR) of 1.91x. Fitch's downside rating case resulted in a minimum DSCR of 1.09x that averages 1.54x from 2013 to 2032, and LLCR of 1.53x. In addition to economic and operating stresses, the latter case incorporated interest rate sensitivities.

RATING SENSITIVITIES

--Meaningfully higher actual interest rates on refinanced debt than currently projected by the Sponsors;

--Traffic growth expectations of below 2.0% over a prolonged period;

--Operating and major maintenance expenditures growing 10.0% above inflation for a prolonged period;

--Significantly higher capital costs in connection with mandatory roadway and network improvements;

--Weaker overall financial flexibility resulting in an LLCR profile below 1.60x under Fitch's base case.

SECURITY

The collateral in favor of the holders of RCO's senior debt, consists of: i) the trust estate established under the Payment Trust Agreement, including any moneys deposited into the project accounts; ii) all of RCO's tangible and intangible assets (excluding its rights under the Concession Agreement, its rights under the toll road O&M Agreement and the other items of property or rights assigned or that may be assigned to the Payment Trust) belonging to the issuer and used by it in connection with the activities contemplated in the Concession Agreement; and iii) the stock of RCO held by all of its shareholders. The collateral does not include a security interest in any of the ownership interests in Concesionaria Irapuato La Piedad, S.A. de C.V. (CONIPSA) and Concesionaria de Vias Irapuato Queretaro S.A. de C.V. (COVIQSA)or any of the assets of such subsidiaries.

TRANSACTION SUMMARY

RCO is issuing MXN10,000 million senior secured notes (the 2013 notes) with legal maturity in 2028. The notes are to be structured with a close to six-year grace period of interest payment only, under a scheduled amortization, and a fixed interest rate that is payable biannually.

Proceeds from the 2013 notes are expected to prepay bank debt, fund the debt service reserve account (DSRA), and pay several fees and issuance expenses. Structural protections include: 12-month DSRA of interest and principal, five-months reserve account for major maintenance, and a restriction of distribution payments whenever i) DSCR is under 1.25x, ii) there is any event of default, or iii) the balance of the liquidity facility surpasses certain predefined thresholds.

In 2007, RCO was awarded a 30-year federal concession over a four-toll road package known as 'Farac I'. All of the roads have been in operation since the early 1990s and are located in West Central Mexico, connecting Guadalajara and Mexico City, two of the largest metropolitan areas in the country.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Criteria for Infrastructure and Project Finance' (July 11, 2012);

--'Rating Criteria for Toll Roads, Bridges, and Tunnels' (Aug. 2, 2012).

Applicable Criteria and Related Research:

Rating Criteria for Toll Roads, Bridges, and Tunnels

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684146

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=791574

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch RatingsPrimary AnalystAstra CastilloDirectorFitch Mexico S.A. de C.V.+52-81-8399-9137Prol. Alfonso Reyes 2612Monterrey, Mexico 64920orSecondary AnalystSandra FontAnalyst+52-81-8399-9143orCommittee ChairpersonCherian GeorgeManaging Director+1-212-908-0519orMedia Relations:Elizabeth Fogerty, New York, +1 212-908-0526Email: elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings