...- Wells Fargo entered the COVID-19 economic downturn with weaker preprovision earnings generation than peers and ongoing regulatory issues , thereby weakening its ability to offset provision expense, which will likely remain elevated due to the pandemic. - We are lowering our long-term rating on Wells' holding company by one notch to '###+'. At the same time, we are affirming our 'A+/A-1' ratings on Wells' main operating subsidiaries. - We are also lowering by one notch the ratings on all of Wells' subordinated debt and preferred securities, including debt issued from the operating subsidiaries, and lowering our long-term ratings on Wells Fargo Finance LLC as well as the long-term senior unsecured ratings on Wells Fargo Canada Corp., because those ratings are based on a guarantee from the parent. - Our stable outlook assumes that the company's progress to resolving the regulatory consent order will continue, asset quality deterioration during this downturn will not be outsized relative...
