Fitch Ratings on Feb. 21 downgraded several of U.S. Bancorp's ratings, following its settlement of Bank Secrecy Act and anti-money laundering compliance deficiency allegations.

Details disclosed of the Minneapolis-based company's actions are "credit negative" for U.S. Bancorp's credibility with stakeholders, the rating agency said. And considering all the similar penalties its peers have had to pay over the years, "the lack of proactive response from [U.S. Bancorp] was outside of [Fitch's] expectations."

Fitch downgraded the company's long-term issuer default rating and senior debt rating to AA- from AA, its subordinated debt rating to A+ from AA- and its preferred stock rating to BBB from BBB+.

The agency also lowered subsidiary US Bank NA's long-term issuer default rating and senior debt rating to AA- from AA and its long-term deposits rating to AA from AA+.

The rating agency affirmed the company's short-term issuer default rating and debt rating at F1+. It affirmed US Bank's short-term issuer default rating, debt rating and deposit rating also at F1+.

The outlook remains stable, and the company remains one of Fitch's highest-rated banks.