We believe Wells will likely perform better than peers amid the increased industry risk. We have lowered our rating on Wells Fargo to 'AA-/A-1+'. Wells' capital increase of $8.6 billion served to limit the extent of the downgrade. On June 17, 2009, Standard&Poor's Ratings Services downgraded Wells Fargo&Co. to 'AA-/A-1+' from 'AA/A-1+'. We also lowered our counterparty credit ratings on related entities to 'AA/A-1+' from 'AA+/A-1+', and removed them from CreditWatch Negative, where they where placed May 4, 2009. The outlook is negative. The downgrade follows an industry review and our recent criteria on stress testing and U.S. banks. We expect Wells Fargo to continue to weather the problems of the industry in better shape than
