NEW YORK (Standard&Poor's) Jan. 21, 2010—Standard&Poor's Ratings Services said today that U.S. Bancorp's (A+/Stable/A-1) fourth-quarter results will not affect the ratings. The current recessionary conditions and their associated high credit costs weakened the firm's earnings. However, there were significant positives at work. Revenue growth was healthy, aided by acquisitions and organic growth in fee income and loans. Funding costs remained low as deposit growth was robust, helping boost the net interest margin and offsetting some of the impact of low interest rates on other transaction businesses. Costs continue to be well controlled, contributing to a 49% efficiency ratio. Given these positive fundamental factors offsetting the rising charge-offs and additions to reserves, the 17% pretax margin represents
