The ratings on Capital One Financial Corp. are based on the Falls Church, Va.-based company's performance as an independent entity since its 1994 spin-off from the credit card division of Signet Banking Corp. The ratings reflect risks inherent in a limited product menu, which, while broadening, encompass high-risk loan types; heavy reliance on wholesale-sourced funding; an increasingly competitive operating environment; rising charge-off rates; increased regulatory risk; and recent events that bring into question corporate governance. Capital One has made a concerted effort to broaden its product menu beyond domestic credit card lending, and has expanded its product offerings to include overseas credit card lending, auto lending, and installment lending. The predominate asset type remains domestic credit card lending, and while
