Standard&Poor's Ratings Services' ratings on U.S. Bancorp (USB) reflect the bank's continuing generation of well-above-average profitability among its peer group of large regional and large complex banks, even though 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 economic environment. With $247 billion of assets at June 30, 2008, USB is the sixth-largest U.S. commercial bank. USB benefits from a sizable and low-cost core deposit funding base that supports funding costs that remain among the lowest of its peers. This has enabled USB to generate strong net interest margins (NIMs) in varied interest
