Strengths: Strong franchise position in U.S. credit cards Improved diversification of earnings, assets, and funding through mergers and acquisitions Appropriate liquidity for the current environment Weaknesses: Higher credit-risk consumer asset classes versus traditional commercial bank Credit card concentration Industry reform legislation risk The ratings on Capital One Financial Corp. reflect Standard&Poor's Ratings Services' view of the company's strong franchise position in U.S. cards: improved diversification of earnings, assets, and funding; and appropriate liquidity for the current environment. Ratings limitations in our view include higher credit risk consumer asset classes, concentration in credit cards, and industry reform legislation risk. We consider that Capital One's concentration in credit cards (credit card lending represents about 39% of managed loans) heightens credit
