Research Update: Wells Fargo&Co. 'AA' Rating Placed On CreditWatch Positive

On Nov. 1, 2006, Standard&Poor's Ratings Services placed its 'AA' long-term counterparty credit and senior unsecured debt ratings on Wells Fargo&Co. on CreditWatch Positive. Also, the 'AA+' long-term counterparty credit and senior unsecured ratings on Wells Fargo Bank N.A. and all other bank subsidiaries were placed on CreditWatch Positive. The CreditWatch with positive implications reflects consistent core profitability and operating results. We believe that the industry has become sounder on a variety of fronts over the years. Furthermore, the potential for higher ratings--including at the 'AAA' level--now exists. The last AAA rated bank was J.P. Morgan. That rating was lowered in 1998. In assessing Wells Fargo's ability to command an 'AAA' rating, we will review the

...On Nov. 1, 2006, Standard & Poor's Ratings Services placed its '##' long-term counterparty credit and senior unsecured debt ratings on Wells Fargo & Co. on CreditWatch Positive. Also, the '##+' long-term counterparty credit and senior unsecured ratings on Wells Fargo Bank N.A. and all other bank subsidiaries were placed on CreditWatch Positive. The CreditWatch with positive implications reflects consistent core profitability and operating results. We believe that the industry has become sounder on a variety of fronts over the years. Furthermore, the potential for higher ratings--including at the '###' level--now exists. The last ### rated bank was J.P. Morgan. That rating was lowered in 1998. In assessing Wells Fargo's ability to command an '###' rating, we will review the company's leadership in the highly competitive retail banking business, organic growth prospects without sacrificing price or credit standards, and risk management practices in credit and market risk. We will further...

Research Update