On June 2, 2008, Standard&Poor's Ratings Services affirmed its 'AA/A-1+' counterparty credit rating on U.S. Bancorp (USB). The outlook is stable. Our ratings on USB reflect the bank's continuing generation of well-above average profitability among its peer group of large regional and large complex banks, even though it has maintained a relatively low-risk business mix and growth strategy. USB's results are significantly less volatile than those of many of its competitors, and profitability measures have remained strong, despite the current challenging economic environment. With $242 billion of assets at March 31, 2008, USB is the sixth-largest U.S. commercial bank. USB benefits from a sizable and low-cost core deposit funding base that supports funding costs that remain among the
