Fitch lifts Wachovia, affirms Wells Fargo

Fitch Ratings said it affirmed Wells Fargo & Co.'s long-term issuer default rating and senior debt at AA, subordinated debt and preferred stock at AA-, short-term ratings at F1+ and trust preferreds at AA-.

The agency also upgraded Wachovia Corp.'s ratings to align them with Wells Fargo, including its senior long-term debt to AA from A+, subordinated debt to AA- from A, preferred stock to AA- from A-, short-term debt to F1+ from F2 and trust preferreds to AA- from A.

Wachovia's ratings were removed from Rating Watch positive. The outlook is stable.

Wells Fargo has effectively doubled its franchise through the acquisition of Wachovia on Wednesday, Fitch said, adding that the transaction transforms Wells Fargo from a prominent western U.S. banking company to a dominant, national banking company with strong deposit market share and meaningful household penetration throughout its 39-state footprint.

The agency said that while every merger carries integration risks, Wells Fargo, under its current management team, has an excellent track record with acquisitions and tends to take a deliberate approach to ensure smoother transitions and lower customer disruption when operations are consolidated.

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