US Bank 2015 Annual Report Download - page 64

of the Company’s Board of Directors oversees the
Company’s liquidity risk management process and approves
the contingency funding plan. The ALCO reviews the
Company’s liquidity policy and guidelines, and regularly
assesses the Company’s ability to meet funding requirements
arising from adverse company-specific or market events.
The Company’s liquidity policy requires it to maintain
diversified wholesale funding sources to avoid maturity, name
and market concentrations. The Company operates a Grand
Cayman branch for issuing Eurodollar time deposits. In
addition, the Company has relationships with dealers to issue
national market retail and institutional savings certificates and
short-term and medium-term notes. The Company also
maintains a significant correspondent banking network and
relationships. Accordingly, the Company has access to
national federal funds, funding through repurchase
agreements and sources of stable certificates of deposit and
commercial paper.
The Company regularly projects its funding needs under
various stress scenarios and maintains a contingency funding
plan consistent with the Company’s access to diversified
sources of contingent funding. The Company maintains a
substantial level of total available liquidity in the form of on-
balance sheet and off-balance sheet funding sources. These
include cash at the Federal Reserve Bank, unencumbered
liquid assets, and capacity to borrow at the FHLB and the
Federal Reserve Bank’s Discount Window. Unencumbered
liquid assets in the Company’s available-for-sale and held-to-
maturity investment portfolios provide asset liquidity through
the Company’s ability to sell the securities or pledge and
borrow against them. At December 31, 2015, the fair value of
unencumbered available-for-sale and held-to-maturity
investment securities totaled $92.4 billion, compared with
$86.9 billion at December 31, 2014. Refer to Table 13 and
“Balance Sheet Analysis” for further information on investment
securities’ maturities and trends. Asset liquidity is further
enhanced by the Company’s ability to pledge loans to access
secured borrowing facilities through the FHLB and Federal
Reserve Bank. At December 31, 2015, the Company could
have borrowed an additional $74.9 billion at the FHLB and
Federal Reserve Bank based on collateral available for
additional borrowings.
TABLE 21 DEBT RATINGS
Moody’s
Standard &
Poor’s Fitch
Dominion
Bond
Rating Service
U.S. Bancorp
Long-term issuer rating ............................................. A1 A+ AA AA
Short-term issuer rating ............................................. A-1 F1+ R-1(middle)
Senior unsecured debt .............................................. A1 A+ AA AA
Subordinated debt ................................................. A1 A- AA- AA(low)
Junior subordinated debt ............................................ A2 BBB AA(low)
Preferred stock .................................................... A3 BBB BBB+ A
Commercial paper ................................................. P-1 A-1 F1+
U.S. Bank National Association
Long-term issuer rating ............................................. A1 AA- AA
Short-term issuer rating ............................................. P-1 A-1+ F1+ R-1 (high)
Long-term deposits ................................................ Aa1 AA+ AA(high)
Short-term deposits ................................................ P-1 F1+
Senior unsecured debt .............................................. A1 AA- AA AA(high)
Subordinated debt ................................................. A1 A AA- AA
Commercial paper ................................................. P-1 A-1+ F1+
Counterparty risk assessment ........................................ Aa2(cr)/P-1(cr)
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