On June 2, 2008, Standard&Poor's Ratings Services' affirmed its 'AA+/A-1+' counterparty credit rating on Wells Fargo&Co. The outlook is stable. The ratings reflect the franchise diversification, consistency in core earnings, and capital and risk management disciplines that set Wells Fargo apart from its large bank peers. First-quarter 2008 and fourth-quarter 2007 operating results showed record revenues in a most challenging housing and mortgage cycle. This credit cycle is pushing residential credit costs higher for Wells Fargo, which posted a credit provision of $2 billion in the first quarter, preceded by a $2.6 billion provision in the fourth quarter to meet the rising credit losses, especially in its second-lien home equity portfolio. The environment is also causing
