Moody's cites US Bancorp for possible downgrade
NEW YORK (AP) — Moody's Investors Service on Thursday put the long-term ratings of US Bancorp, one of the country's largest banks, on review for a possible downgrade.
The ratings agency citing increasing competition from other banks as they recover from the recession. The bank's growing mortgage business also could make it more vulnerable to volatile markets, Moody's said.
If a downgrade results from the review, it is expected to be limited to one notch and will still leave US Bancorp near the top of Moody's bank ratings. Moody's said US Bancorp is a well-managed bank that got through the recent downturn better than many other banks.
US Bancorp is currently rated Aa3 for senior debt by Moody's. Its lead operating bank, U.S. Bank National Association, has a standalone bank financial strength rating of B-plus
Shares in US Bancorp, which is based in Minneapolis, rose 1 cent to $34.05 in after-hours trading after declining 30 cents to $34.04 during the regular session.