Moody's affirms Wells Fargo

Moody's Investors Service said it affirmed Wells Fargo & Co.'s Aa1 senior ratings as well as its subsidiaries' ratings including those for its lead bank, Wells Fargo Bank, NA.

The outlook is stable.

Moody's said the affirmation was based on its view that Wells Fargo has the financial flexibility to absorb the relatively high level of charges in its home equity portfolio that could occur over the next six to eight quarters. A major contributor to Wells Fargo's financial flexibility is its strong capital ratios, Moody's added.

The agency said ratings could be downgraded if Wells Fargo's non-mortgage businesses fail to produce healthy profits that provide strong credit protection against the expected mortgage losses.

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