Ratings on U.S. Bancorp reflect the company's consistently high level of core profitability and its diverse business mix in terms of both the variety of products and services offered, and the national scale of its key business lines. Revenue diversification is strong at U.S. Bancorp. Noninterest income has steadily contributed 45%-48% of total revenue. Through both acquisitions and organic growth, fee-based businesses have strengthened during the past few years. Profitability measures have held strong in the midst of the current prolonged lower interest rate cycle. Given U.S. Bancorp's low-cost, core retail funding profile and the overall asset-sensitive position of its balance sheet, core earnings should benefit with rising interest rates and a steep yield curve. U.S. Bancorp maintains strong market
