MINNEAPOLIS--(BUSINESS WIRE)--Jan. 27, 2006--Standard & Poor's
(S&P) Ratings Services announced today that it has raised the ratings
on U.S. Bancorp (NYSE:USB), including its counterparty credit ratings,
to AA-/A-1+ from A+/A-1.
S&P also raised its long-term counterparty credit ratings on U.S.
Bancorp's subsidiaries, U.S. Bank National Association and U.S. Bank
National Association N.D., to AA from AA-. This AA rating is currently
the highest rating given by S&P to any domestic bank. The rating
agency also revised its outlook for U.S. Bancorp to stable from
Credit analyst Victoria Wagner had the following remarks regarding
U.S. Bancorp in the S&P announcement "The ratings upgrade for U.S.
Bancorp and its units reflects the company's sector-leading core
earnings performance and a consistency of performance throughout a
challenging interest rate cycle. The ratings also reflect the
company's lower credit risk profile, which has translated into lower
credit costs and lower volatility of operating results."
The S&P announcement included the following information on U.S.
"U.S. Bancorp operates with the highest pretax operating margin of
all of the large regional and large complex banks. Given U.S.
Bancorp's low-cost, core retail funding profile and close management
of interest rate risk, core earnings should benefit with rising
interest rates and a steeper yield curve.
"U.S. Bancorp maintains strong market positions in several
business lines, including merchant processing (the nation's third
largest), corporate trust, and corporate credit cards. The high number
of diverse national business lines has consistently generated a high
level of core profitability even in the midst of challenging credit
and interest rate cycles.
"U.S. Bancorp's quarterly capital-generating capacity remains
strong, and its current level of strong profitability should be
sustainable given its strong operating efficiencies, business and
revenue diversification, and the high component of fee-based revenues.
The successful build-out and growth of key nonbanking businesses have
driven the strong level of revenue diversification. Critical capital
and asset quality measures are expected to stay within U.S. Bancorp's
normal historic range."
U.S. Bancorp, with assets of $209 billion, is the 6th largest
financial holding company in the United States. The company operates
2,419 banking offices and 5,003 ATMs, and provides a comprehensive
line of banking, brokerage, insurance, investment, mortgage, trust and
payment services products to consumers, businesses and institutions.
U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on
the web at www.usbank.com.
CONTACT: U.S. Bancorp
Steve Dale (Media), 612-303-0784
SOURCE: U.S. Bancorp