U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable - S&P Global Ratings’ Credit Research

U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable

U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable - S&P Global Ratings’ Credit Research
U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable
Published May 11, 2023
5 pages (2227 words) — Published May 11, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Although U.S. Bancorp (USB) continues to generate higher earnings than its large regional bank peers, we believe its overall performance advantage has narrowed as those peers have gained market share and delivered stable results. In addition, USB's capital levels are lower than peers, and we believe the company will need to build capital ratios to meet possible regulatory requirements by earliest year-end 2024 should it move into a category II bank designation. We lowered our ratings on USB and its subsidiaries, including our long-term issuer credit and unsecured debt ratings on the holding company to 'A' from 'A+', and the issuer credit ratings on its operating subsidiary to 'A+' from 'AA-'. The stable outlook on USB and its operating subsidiaries

  
Brief Excerpt:

...- Although U.S. Bancorp (USB) continues to generate higher earnings than its large regional bank peers, we believe its overall performance advantage has narrowed as those peers have gained market share and delivered stable results. - In addition, USB's capital levels are lower than peers, and we believe the company will need to build capital ratios to meet possible regulatory requirements by earliest year-end 2024 should it move into a category II bank designation. - We lowered our ratings on USB and its subsidiaries, including our long-term issuer credit and unsecured debt ratings on the holding company to 'A' from 'A+', and the issuer credit ratings on its operating subsidiary to 'A+' from '##-'. - The stable outlook on USB and its operating subsidiaries reflects our expectation that the company will generate stable earnings, build capital, and maintain adequate asset quality and good balance sheet metrics....

  
Report Type:

Ratings Action

Ticker
USB
Issuer
U.S. Bancorp
GICS
Diversified Banks (40101010)
Sector
Global Issuers , Public Finance , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable" May 11, 2023. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/U-S-Bancorp-Downgraded-To-A-From-A-On-Narrower-Outperformance-Versus-Peers-Outlook-Stable-2985796>
  
APA:
S&P Global Ratings’ Credit Research. (). U.S. Bancorp Downgraded To 'A' From 'A+' On Narrower Outperformance Versus Peers; Outlook Stable May 11, 2023. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/U-S-Bancorp-Downgraded-To-A-From-A-On-Narrower-Outperformance-Versus-Peers-Outlook-Stable-2985796>
  
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