Moody’s changes Wells Fargo view to negative

Moody’s Investors Service said it changed the outlook to negative from stable and affirmed the ratings of Wells Fargo & Co. and its rated subsidiaries, including the group’s main bank operating entity, Wells Fargo Bank, NA. Wells Fargo is rated A2 for long-term senior unsecured debt.

“The outlook change reflects Wells Fargo’s slower than anticipated pace in resolving its legacy governance, oversight, compliance and operational risk management deficiencies,” said Allen Tischler, a Moody’s senior vice president, in a press release.

“Although Wells Fargo’s years-long remediation efforts are progressing, the slow pace weighs on its expense base, further undermining its earnings potential against the backdrop of challenging operating conditions resulting from the coronavirus pandemic outbreak,” Tischler added.

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