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. 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 an increase in first-mortgage credit losses. The second-lien home equity portfolio is the source of
