U.S. Bancorp Outlook Revised To Negative On Announced MUFG Union Bank Acquisition; Ratings Affirmed

On Sept. 21, U.S. Bancorp (USB) announced an agreement to buy the majority of MUFG Union Bank ($105 billion in assets), from Mitsubishi UFJ Financial Group (MUFG), for $8 billion. Although the deal will enhance USB's scale and should moderately boost profitality, it also adds integration risks and increases loan concentration in California. We revised our outlook on USB and its subsidiaries to negative from stable and affirmed our ratings, including our 'A+/A-1' issuer credit ratings on holding company USB. The negative outlook indicates our view of the elevated risks associated with the acquisition of MUFG Union Bank over the next two years. NEW YORK (S&P Global Ratings) Sept. 22, 2021--S&P Global Ratings revised the outlook on U.S. Bancorp (USB)

...September 22, 2021 - On Sept. 21, U.S. Bancorp (USB) announced an agreement to buy the majority of MUFG Union Bank ($105 billion in assets), from Mitsubishi UFJ Financial Group (MUFG), for $8 billion. - Although the deal will enhance USB's scale and should moderately boost profitality, it also adds integration risks and increases loan concentration in California. - We revised our outlook on USB and its subsidiaries to negative from stable and affirmed our ratings, including our 'A+/A-1' issuer credit ratings on holding company USB. - The negative outlook indicates our view of the elevated risks associated with the acquisition of MUFG Union Bank over the next two years. NEW YORK (S&P Global Ratings) Sept. 22, 2021--S&P Global Ratings revised the outlook on U.S. Bancorp (USB) and its operating subsidiaries to negative from stable. We also affirmed our 'A+/A-1' issuer credit ratings on USB and '##-/A-1+' issuer credit ratings on its operating subsidiaries. The negative outlook reflects our...

Ratings Action