S&P cuts U.S. Bancorp

S&P said it lowered its long-term issuer credit ratings on U.S. Bancorp to A from A+ and its issuer credit ratings on the bank's operating subsidiaries (including U.S. Bank NA, MUFG Union Bank NA, and Elavon Financial Services DAC) to A+ from AA-.

The agency also downgraded the ratings on the subordinated debt and preferred stock issued from the holding company to A- and BBB from A and BBB+, respectively.

“The downgrade primarily reflects our view that USB's outperformance versus peers has narrowed. Although USB continues to perform well with respect to earnings, its results in a variety of metrics, such as risk-adjusted returns, indicate its performance advantage over large regional peers is no longer as outsize as it used to be. In the last few years, large regional bank peers, such as PNC and Truist Financial Corp., have closed the performance gap with USB through strategic acquisitions and building scale and efficiency. As a result, they've delivered consistent and stable results,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.