Diversified revenue streams Strong capital-generating capacity High portion of fee-based revenues Strong market position in its market area Reliance on wholesale funding Exposure to credit problems Weak common equity component of capital Standard&Poor's Ratings Services believes that U.S. Bancorp (USB) will continue to outperform its peer group of large regional and large complex banks as a result of a relatively low-risk business mix and growth strategy. However, the severity of the economic cycle as it results in mounting credit costs could weigh on the bank's earnings prospects such that these would not be consistent with the 'AA+' rating level. The bank's strengths, corroborated by our own and the regulatory stress testing results that showed USB did not need
