S&P: Wells Fargo unaffected

Standard & Poor's said Wells Fargo & Co. (AA+/stable/A-1+) announced a $1.4 billion provision to cover higher losses in its home equity loan portfolio and its exit from channels where the bulk of the loans were sourced.

S&P said that based on the third-quarter reported net income of $2.3 billion, this special provision could reduce Wells Fargo's fourth-quarter earnings by 56%, but that the agency recognizes Wells Fargo's strong capital base and business and earnings diversity as being truly robust. Therefore the special provision will not affect the company's ratings, the agency said.

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