S&P Global Ratings has upgraded Wells Fargo & Company's long-term issuer credit rating to 'A-' from 'BBB+', citing significant progress in refining its governance, risk culture, and operational oversight. The upgrade follows the June 2025 termination of the bank's seven-year Federal Reserve asset cap, which cleared the path for balance sheet growth and deeper client engagement. Since shedding the regulatory constraint, Wells Fargo has expanded its commercial lending, credit card, and auto financing portfolios while strengthening its capital markets presence, lifting its return on tangible common equity to 16.1% through mid-2026 and positioning management to track toward its revised medium-term profitability target of 17% to 18%. Total assets have expanded 15% year-over-year, outpacing the broader banking sector, though S&P expects asset growth to moderate toward industry averages by 2027. The bank's Common Equity Tier 1 ratio stands at 10.3%, with deposits making up 72% of total liabilities and a liquidity coverage ratio of 119%. S&P assigned a stable outlook across all Wells Fargo entities, noting that near-term upgrades are unlikely over the next two years, while sustained aggressive expansion or material erosion in capital buffers could trigger negative rating action.
Wells Fargo & CompanyS&P upgraded Wells Fargo's credit rating to 'A-' after the Fed asset cap ended, enabling balance sheet growth and higher profitability targets.
S&P Global Inc