On Nov. 1, 2006, Standard&Poor's Ratings Services placed its 'AA-' long-term counterparty credit and senior unsecured debt ratings on U.S. Bancorp (USB) on CreditWatch with positive implications. Standard&Poor's also placed its 'AA' long-term counterparty credit and senior unsecured debt ratings on USB's subsidiaries, U.S. Bank National Association and U.S. Bank National Association, ND on CreditWatch with positive implications (see list below). This CreditWatch action is in conjunction with reviews initiated on several other large U.S. banks. USB continues to generate sector-leading profitability, while maintaining a relatively low-risk business mix and growth strategy. USB benefits from a sizable and low-cost core deposit funding base, which supports a cost of funds that remains among the lowest of its
