On Jan. 31, 2003, Standard&Poor's Ratings Services affirmed its ratings on U.S. Bancorp and its units and revised U.S. Bancorp's outlook to positive. The ratings reflect the strong profitability of U.S. Bancorp, which were maintained over the past six quarters in the face of a challenging economy and weaknesses in the commercial and corporate sector within the footprint of its 24-state banking franchise. Although the slower economy has led to higher net loan charge-offs and higher NPAs, profitability measures remain strong. Revenue diversification is strong at U.S. Bancorp and has improved in certain nonbank business lines through recent acquisitions (NOVA and State Street Corporate Trust). Noninterest income is a high component of total revenues at 46% and the
