Moody's affirms Wachovia

Moody's Investors Service said it affirmed its ratings on Wachovia Corp. (senior at Aa3) including those of its lead bank, Wachovia Bank, NA.

The agency said that the bank is rated B+ for financial strength and Aa1 for deposits.

However, Moody's said it changed the outlook to negative from stable.

The agency added that the affirmation follows Wachovia's 4Q07 results, in which the banking organization reported basically a break-even quarter, after taking: 1) further write- downs on its sub-prime securities that are in the form of collateralized-debt-obligations and residential-mortgage-backed securities, 2) further write-downs on its inventory of commercial-mortgage-backed securities and a warehouse of real-estate loans that were held-for-sale, as well as, 3) increased provisions primarily against its sizable exposure to option-adjustable-rate- mortgages.

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