S&P raises Wachovia, equalizes ratings with Wells Fargo

Standard & Poor's said it raised its ratings on Wachovia Corp., including raising its counterparty credit rating to AA/A-1+ from A+/A-1, and removed all ratings from Creditwatch positive where they were placed on Oct. 10.

All ratings on Wachovia Corp. are subsequently withdrawn, the agency said, adding that the rating action reflects the close of Wachovia's acquisition by higher rated Wells Fargo & Co. (AA/negative/A-1+) on Dec. 31.

At the same time, the agency said it raised its long-term counterparty credit ratings on Wachovia Bank NA and Wachovia Mortgage FSB to AA+ from AA- and affirmed the A-1+ short-term ratings. These ratings are now equalized to those on Wells Fargo Bank NA.

"The rating actions are due to the completion of the acquisition of Wachovia Corp. and its entities by Wells Fargo," said S&P credit analyst Victoria Wagner. Wells Fargo acquired all outstanding shares of Wachovia's common stock in a stock-for-stock transaction, and assumed all debt and preferred shares of Wachovia Corp.

The outlook is now negative, reflecting the negative outlook on Wells Fargo & Co.

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