Standard&Poor's Ratings Services' ratings on Wells Fargo&Co. reflect the franchise diversification, consistency in core earnings, and capital and risk management disciplines that set Wells Fargo apart from its large bank peers. 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 $2.6 billion in the fourth quarter to meet the rising credit losses in its second-lien home equity portfolio. The environment is also causing an increase in first mortgage credit losses. Of the total fourth-quarter provision, $1.4 billion is dedicated to the national home equity group portfolio, which totaled $11.9 billion at year-end
