The ratings reflect U.S.Bancorp's (USB) continuing generation of well-above-average profitability among its peer group of large regional and large complex banks, even while it has maintained a relatively low-risk business mix and growth strategy. USB's results are significantly less volatile than those of many of its competitors, and profitability measures have remained strong despite the current challenging interest rate environment. USB benefits from a sizable and low-cost core deposit funding base that supports a cost of funds that remains among the lowest of its peers. This has enabled the generation of strong net interest margins in varied interest rate environments. It has maintained an exceptionally high degree of operating efficiency. It commands strong market positions in several national business lines,
