Wells Fargo's Credit Outlook Cut by S&P on Abrupt CEO Exit
S&P lowered the outlook on the bank’s credit rating to negative from stable, it said Monday in a statement.
(Bloomberg) -- Wells Fargo & Co.’s credit outlook was cut by S&P Global Ratings after the bank’s chief executive officer stepped down last week.
S&P lowered the outlook on the bank’s credit rating to negative from stable, it said Monday in a statement. The lender’s rating was affirmed at A-.
Tim Sloan gave in to critics and abruptly stepped down Thursday, after the 31-year company veteran struggled to tame a range of scandals, launching the fourth-largest U.S. bank into a hasty search for a successor. The lender’s board said it plans to look externally for a permanent replacement.
“The leadership transition adds a layer of uncertainty to the company amid a more protracted timeline than we had originally expected for Wells to resolve regulatory matters related to governance and operational risk management,” S&P said.
S&P cut Wells Fargo’s rating last year after the Federal Reserve imposed a growth restriction on the bank, limiting assets to their level at the end of 2017 until the bank fixes its missteps to the regulator’s satisfaction.
To contact the reporter on this story: Hannah Levitt in New York at hlevitt@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Dan Reichl, Josh Friedman
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