Wells Fargo Doesn't Have To Worry About Moody Downgrades
Wall Street‘s big banks are anxiously awaiting a looming downgrade by Moody,but one of the nation’s largest banks doesn’t have much to worry about.
Wells Fargo, the nation’s fourth largest bank by assets, is not on Moody’s list of banks up for a credit review. When Moody’s first announced it was the reviewing the credit ratings of 17 banks back in February Wells Fargo was not on its list.
How did Wells avoid Moody’s downgrade target list? According to its release back in February it’s focusing on institutions with global capital markets operations.
The majority of Wells Fargo’s business is here in the U.S. CEO John Stumpf explained earlier this year nearly all of his bank’s revenue is domestic. Foreign loans are a mere 5% of its portfolio. FORBES profiled Wells Fargo for its February 13 cover story in which executives there said the bank’s international business is primarily be driven by existing customers who have needs overseas.
“Given the consistency of Wells Fargo’s earnings Moody’s would have a tough time throwing it in with JPMorgan and Bank of America,” bank analyst Nancy Bush explains.