On Sept. 21, U.S. Bancorp (USB) announced an agreement to buy the majority of MUFG Union Bank ($105 billion in assets), from Mitsubishi UFJ Financial Group (MUFG), for $8 billion. Although the deal will enhance USB's scale and should moderately boost profitality, it also adds integration risks and increases loan concentration in California. We revised our outlook on USB and its subsidiaries to negative from stable and affirmed our ratings, including our 'A+/A-1' issuer credit ratings on holding company USB. The negative outlook indicates our view of the elevated risks associated with the acquisition of MUFG Union Bank over the next two years. On Sept. 22, 2021, S&P Global Ratings revised the outlook on U.S. Bancorp (USB) and its operating
