On Jan. 28, 2009, Wells Fargo&Co. (AA/Negative/A-1+) reported a fourth-quarter loss of $2.55 billion and 2008 earnings of $2.84 billion. These results were broadly in line with our expectations when we downgraded Wells Fargo on Dec. 19, 2008, and assigned a negative outlook. The ratings reflect our stand-alone credit assessment, with no ratings uplift for government support, and the bank's role as one of the systemically important banks in the U.S. financial system. A sizable loan-loss reserve build of $5.6 billion, a $2.8 billion provision to cover fourth-quarter loan losses, and merger costs associated with the close of the Wachovia acquisition on Dec. 31, 2008, were the main reasons behind the fourth-quarter loss. Underlying the lower earnings for
