U.S. Bancorp Upgraded by S&P as Earnings Outperform Peers
The lender was raised to A+ from A, S&P said today in a statement. The Minneapolis-based bank had its short-term issuer rating affirmed at A-1, and its outlook is stable, according to the statement.
Chief Executive Officer Richard Davis boosted quarterly profit every period since the fourth quarter of 2009, except for the first three months of this year. Davis, 54, who hasn’t posted a loss in the six years he’s run the company, has referred to his traditional banking strategy of taking deposits and making loans as “boring.”
“The upgrade reflects USB’s sustained outperformance versus peers over the last four years, which the stability in its revenue and earnings during and after the financial crisis demonstrate,” S&P said in the statement. With housing prices nearing a bottom, “we believe that USB’s outperformance compared with peers will continue.”
U.S. Bancorp fell 0.4 percent to close at $33.23 in New York. The shares have advanced 23 percent this year, compared with a 20 percent gain in the 24-company KBW Bank Index.
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