Moody's Downgrades Long-Term Ratings on Wells Fargo (WFC)
Tweet
Share
E-mailGet Alerts WFC Hot Sheet
Join SI Premium – FREE
Moody's Investors Service downgraded the long-term ratings of Wells Fargo & Company (NYSE: WFC) (holding company senior debt to A2 from A1) and of its major subsidiaries including Wells Fargo Bank N.A. (rating on the bank for deposits to Aa3 from Aa2). The actions conclude a review for downgrade announced on June 2, 2011. The outlook on the long-term senior ratings remains negative.
The downgrades result from a decrease in the probability that the US government would support the bank, if needed. Moody's believes that the government is likely to continue to provide some level of support to systemically important financial institutions. However, it is also more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute. Moody's is therefore lowering the amount of support it incorporates into Wells Fargo's ratings to levels reflected prior to the crisis.
The downgrades result from a decrease in the probability that the US government would support the bank, if needed. Moody's believes that the government is likely to continue to provide some level of support to systemically important financial institutions. However, it is also more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute. Moody's is therefore lowering the amount of support it incorporates into Wells Fargo's ratings to levels reflected prior to the crisis.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Evercore says mutual funds cut bank stock holdings in second quarter
- Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
Create E-mail Alert Related Categories
Credit RatingsRelated Entities
Moody's Investors Service, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
