Fitch upgrades Wells Fargo debt outlook to ‘stable’ from ‘negative’

Fitch Ratings on Monday upgraded its credit outlook for Wells Fargo & Co. to “stable” from “negative” on the view that the bank will “maintain adequate financial performance to support the current rating despite the growth limitations associated with the asset cap as well as the operational and financial burden associated with remediation of regulatory orders.” Wells Fargo currently has a cap of $1.95 trillion on its assets that’s been in place since 2018 in the wake of its phony accounts controversy, as flagged by the U.S. Consumer Financial Protection Bureau. Fitch also reiterated its
long- and short-term issuer default ratings for Wells Fargo at ‘A+’/’F1’ respectively. “The affirmation reflects the group’s diverse business model and strong retail banking franchise, backed by a solid capital position and robust liquidity profile,” Fitch said. Shares of Wells Fargo are down 6% in 2022, compared to a loss of 13.2% by the KBW Nasdaq Bank Index and a drop of 10.5% by the Financial Select Sector SPDR ETF .

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