The ratings on Capital One Financial Corp. reflect the McLean, Va.-based company's product concentration, which while broadening, focuses on higher-credit risk consumer lending, particularly credit cards; heavy reliance on wholesale-sourced funding; and an always-competitive operating environment. Also considered are the advantages afforded by Capital One's acquisition of Hibernia Corp.; improving asset quality measures; a strengthening corporate governance infrastructure; historically strong capital and liquidity; and a lower-risk long-term strategy. Capital One is succeeding in broadening its product menu beyond domestic consumer credit card lending, and has expanded its product offerings to include overseas credit cards, auto financing, small business lending, residential mortgage lending, home equity lending, and installment lending. Additionally, Capital One's intention of acquiring North Fork Bancorp will transform Capital
