Moody's lowers Wells Fargo

Moody's Investors Service said it lowered the debt ratings of Wells Fargo & Co. (senior debt to Aa3 from Aa1) and the ratings on its subsidiaries, including its lead bank, Wells Fargo Bank, NA (long-term bank deposits to Aa1 from Aaa).

Moody's said that the financial strength rating on the bank was lowered three notches to B from A, which translates to a change in the baseline credit assessment to Aa3 from Aaa.

The Prime-1 ratings on the short-term obligations of all Wells Fargo's entities were affirmed, the agency added.

The outlook is negative.

The rating actions follow the closing of Wells Fargo & Co.'s acquisition of Wachovia Corp., and complete Moody's rating review that was announced on Oct. 10.

The downgrades and negative outlook reflect Moody's view that Wells Fargo's current capital position is significantly weakened by the Wachovia transaction.

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