Rationale The ratings on U.S. Bancorp reflect the strong operating performance records of both the old U.S. Bancorp from Minneapolis, Minn. and Milwaukee, Wisc.-based Firstar Corp. The merger-of-equals was completed in late February 2001, creating a financial institution with $160 billion of assets, the eighth-largest in the U.S. The new company's geographic span, stretching from Tennessee to Oregon, diversified revenue streams that generate an impressive fee contribution of 43% to total revenues, on top of a solid net interest margin, and an excellent efficiency-minded culture, underpin the ratings. With the anticipated purchase of NOVA Corp., a major credit card-payment servicer, fee income will climb further, to an even more impressive 50% of the earnings mix. However, earnings have been slowed
