S&P: No change to Wells Fargo

Standard & Poor's said its ratings on Wells Fargo & Co. are not affected by the company's good fourth-quarter results.

According to S&P, Wells Fargo generated $6.1 billion in pretax income, essentially unchanged from the previous quarter but up by 17.3% year over year.

S&P said its negative outlook on Wells Fargo reflects the outlook on the U.S. sovereign rating given the extraordinary support incorporated into the issuer credit ratings on Wells Fargo. If the agency were to lower the U.S. sovereign rating to AA, it would also lower the issuer credit rating on Wells Fargo because it would remove the one notch of support that is factored into the rating.

Similarly, the agency said it could revise the outlook on Wells Fargo to stable if it were to revise its outlook on the U.S. sovereign rating to stable. Otherwise, Wells Fargo's fundamental credit trends are stable, S&P said.

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