Standard&Poor's Ratings Services' ratings on Wells Fargo&Co. reflect its strong national presence in lower-volatility consumer and community banking and deposit gathering that has withstood the current credit cycle. Wells' core business is taking deposits and making loans. In addition, Wells benefits from a broadly diversified base of fee income that contributes to relative earning stability. It is too early to call this credit cycle over. Still, we are closer to the end. Wells generated better-than-average earnings during this cycle compared with many peers, with only one quarterly loss in the fourth quarter of 2008. The loss was a result of the acquisition of Wachovia. Without the purchase of this troubled bank, Wells' performance would have been
