Excellent franchise with leading or near-leading market share in six states Simplified business model with focus on traditional banking Diversified revenue streams Strong preprovision earnings Strong risk-adjusted capital Credit costs likely to remain elevated but manageable given reserve coverage Slower revenue growth Recent financial regulation may affect USB's fees and 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 because of its relatively low-risk business mix and growth strategy. However, the weakness of the economic rebound and continued elevated credit costs could weigh on the bank's earnings prospects. The bank's capital and market-confidence strengths in relation to peers' should give USB an advantage in
