Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's downgrades U.S. Bancorp (senior to Aa3 from Aa2); outlook negative

30 Mar 2009

New York, March 30, 2009 -- Moody's Investors Service downgraded the long-term ratings of U.S. Bancorp (USB) and the bank financial strength rating (BFSR) of its operating banks by one notch (senior debt at the holding company to Aa3 from Aa2; BFSR to B+ from A-). On the other hand, the long-term debt and deposit ratings of U.S. Bank National Association, the lead bank, and U.S. Bank National Association ND, were affirmed (long-term deposits at Aa1). The Prime-1 short-term ratings of all USB entities were also affirmed. Following these rating actions, the outlook on USB and its subsidiaries is negative.

The downgrade reflects Moody's view that USB faces continued elevated credit costs and profitability pressures as the U.S. economy remains weak. The anticipated credit costs will primarily come from USB's real estate exposures, in Moody's view, but also from other consumer and commercial asset classes. These challenges could negatively impact USB's capital position in 2009 despite the benefits to capital from USB's recently announced common dividend reduction.

In addition, the rating agency chose to maintain a negative outlook on USB because of the possibility that in a more stressed economic environment than is currently expected, the company's performance might be meaningfully impacted, not only by higher credit costs, but also due to a reduction in revenue. This is particularly true for volume-driven fee income categories, such as processing activities, as well as those businesses dependent on the level of asset prices, such as investment management. In that scenario, revenue pressures could combine with higher credit costs to further reduce USB's profitability and also weaken its capital base.

Despite the negative rating actions, Moody's expects USB to remain a comparatively highly rated institution for several reasons: 1) its current capital position is solid, 2) notwithstanding Moody's expectation of higher credit costs, USB has limited concentration risk, 3) its liquidity position at both the bank and the holding company are strong, 4) it has a clear track record of strong pre-provision earnings from a diverse array of businesses, and 5) it enjoys significant geographic diversity.

The affirmation of USB's bank-level debt and deposit ratings was influenced by Moody's views on the likelihood of systemic support for USB. In Moody's judgment, USB would benefit from a high level of systemic support in a period of financial distress. In addition to having a meaningful share of deposits in a number of states across the Midwest and Western United States, USB's systemic importance reflects the breadth of its correspondent banking business across the country.

Systemic support is less beneficial for holding company creditors, in Moody's view. Therefore, the holding company's long-term ratings are now two notches lower than those of the bank.

Moody's last rating action on USB was on March 12, 2009 when the holding company's long-term ratings and the BFSR were placed on review for possible downgrade. Today's rating actions conclude that review. As noted at the time, the rating review was consistent with Moody's February 2009 announcement that it was recalibrating some of the weights and relative importance attached to certain rating factors within its current bank rating methodologies. Capital adequacy, in particular, has taken on increasing importance in determining the BFSR in the current environment. Meanwhile, debt and deposit ratings reflect the fact that Moody's expects that its support assumptions will continue to increase for many banks during this global financial crisis. (Please see Moody's February 2009 special comment "Calibrating Bank Ratings in the Context of the Global Financial Crisis.")

The principal methodologies used in rating this issuer were "Bank Financial Strength Ratings: Global Methodology" (February 2007) and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" (March 2007), which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory.

Downgrades:

..Issuer: U.S. Bancorp

....Issuer Rating, Downgraded to Aa3 from Aa2

....Multiple Seniority Medium-Term Note Program, Downgraded to a range of A1 to Aa3 from a range of Aa3 to Aa2

....Multiple Seniority Shelf, Downgraded to a range of (P)A2 to (P)Aa3 from a range of (P)A1 to (P)Aa2

....Preferred Stock Preferred Stock, Downgraded to A2 from A1

....Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Aa3 from Aa2

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa2

..Issuer: U.S. Bancorp (Old)

....Subordinate Regular Bond/Debenture, Downgraded to A1 from Aa3

..Issuer: U.S. Bank National Association

....Bank Financial Strength Rating, Downgraded to B+ from A-

..Issuer: U.S. Bank National Association ND

....Bank Financial Strength Rating, Downgraded to B+ from A-

..Issuer: USB Capital IX

....Preferred Stock Preferred Stock, Downgraded to A2 from A1

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital VI

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital VII

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital VIII

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital X

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XI

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XII

....Preferred Stock Preferred Stock, Downgraded to A1 from Aa3

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XIII

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XIV

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XV

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Capital XVI

....Preferred Stock Shelf, Downgraded to (P)A1 from (P)Aa3

..Issuer: USB Realty Corp.

....Preferred Stock Preferred Stock, Downgraded to A2 from A1

Outlook Actions:

..Issuer: Firstar Bank, N.A.

....Outlook, Changed To Negative From Stable

..Issuer: Firstar Realty LLC

....Outlook, Changed To Negative From Stable

..Issuer: U.S. Bancorp

....Outlook, Changed To Negative From Rating Under Review

..Issuer: U.S. Bancorp (Old)

....Outlook, Changed To Negative From Rating Under Review

..Issuer: U.S. Bank National Association

....Outlook, Changed To Negative From Rating Under Review

..Issuer: U.S. Bank National Association ND

....Outlook, Changed To Negative From Rating Under Review

..Issuer: U.S. Bank National Association, Canada Br.

....Outlook, Changed To Negative From Stable

..Issuer: USB Capital IV

....Outlook, Changed To Rating Withdrawn From Rating Under Review

..Issuer: USB Capital IX

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital V

....Outlook, Changed To Rating Withdrawn From Rating Under Review

..Issuer: USB Capital VI

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital VII

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital VIII

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital X

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XI

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XII

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XIII

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XIV

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XV

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Capital XVI

....Outlook, Changed To Negative From Rating Under Review

..Issuer: USB Realty Corp.

....Outlook, Changed To Negative From Rating Under Review

Withdrawals:

..Issuer: USB Capital IV

....Preferred Stock Shelf, Withdrawn, previously rated (P)Aa3

..Issuer: USB Capital V

....Preferred Stock Shelf, Withdrawn, previously rated (P)Aa3

U.S. Bancorp, headquartered in Minneapolis, Minnesota, reported assets of $266 billion at December 31, 2008.

New York
Robert Young
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Allen H. Tischler
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's downgrades U.S. Bancorp (senior to Aa3 from Aa2); outlook negative
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com