The ratings on Capital One Financial Corp. reflect Standard&Poor's Ratings Services' view of the company's strong franchise position in U.S. cards; improved geographic and asset diversification, strong and growing core deposit franchise, and appropriate liquidity for the current environment. The ratings also reflect lower levels of capital (though improving) and modest future internal capital generation, a moderately high credit risk profile, concentration in credit cards, and lower expected future returns as a result of the credit card legislation reform. We note that the most meaningful impact on Capital One from the legislative changes in the card industry and proposed financial regulation reform is the Card Act, which is largely behind the company. We expect the banking business to
