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Fitch Assigns Initial 'AA-/F1+' IDRs to Wells Fargo Securities International Limited
June 17, 2014 / 4:17 PM / 3 years ago

Fitch Assigns Initial 'AA-/F1+' IDRs to Wells Fargo Securities International Limited

(The following statement was released by the rating agency) CHICAGO, June 17 (Fitch) Fitch Ratings has assigned Issuer Default Ratings (IDRs) of 'AA-/F1+' to Wells Fargo Securities International Limited (WFSIL), a wholly-owned subsidiary of Wells Fargo & Company (WFC). A complete list of WFSIL's ratings follows this release. The Rating Outlook for WFSIL is Stable, in line with the Outlook for WFC. KEY RATING DRIVERS - IDRS The IDRs for WFSIL and WFC are equalized, which reflects Fitch's view that WFSIL is core and integral to WFC's business strategy and operations. Fitch believes WFC would fully support WFSIL in the event of need. WFSIL, a wholly-owned subsidiary of WFC, is a London-based broker dealer. WFSIL acts primarily as the European arm of the Wells Fargo Securities line of business, which provides debt and equity capital raising, along with advisory, hedging and market making capability for Wholesale customers. WFSIL also serves as a distribution arm in Europe for the F/X, Interest Rate Derivatives and Wells Fargo Asset Management lines of business. WFSIL is critical to the company's international strategy, primarily focusing on meeting the needs of its U.S. client base. While WFSIL currently represents a relatively small component of overall group operations or assets, especially relative to other GTUB international broker-dealers that Fitch rates, the agency anticipates that it will grow over time, though is likely to always remain a smaller component of overall operations as compared to the GTUBs. WFSIL is crucial to WFC's ability to retain large corporate clients who need and expect their financial institutions to offer a broad array of banking products and services, both in the U.S. and abroad. Fitch believes there is a high level of management/operational integration between WFSIL and other core WFC operations. WFSIL maintains comfortable liquidity and capitalization, which are augmented by the capacity to tap liquidity and additional capital from WFC in the event of need. RATING SENSITIVITIES - IDRS Given Fitch's view that WFSIL is a core subsidiary of WFC, WFSIL's IDRs would change in conjunction with any changes to WFC's IDRs. KEY RATING DRIVERS AND SENSITIVITIES - Subsidiary and Affiliated Company Rating The review of WFSIL factors in a high probability of support from its parent, WFC. It considers the high level of integration, brand, management, and financial and reputational incentives to avoid subsidiary defaults. In the unlikely event that Fitch no longer considers WFSIL to be a core part of WFC's operations, WFSIL's IDRs could be negatively affected. Fitch assigns the following ratings with a Stable Outlook: Wells Fargo Securities International Limited --Long-term IDR 'AA-'; --Short-term IDR 'F1+'. Contact: Primary Analyst Julie Solar Senior Director +1-312-368-5472 Fitch Ratings, Inc. 70 West Madison Chicago, IL 60602 Secondary Analyst Christopher Wolfe +1-212-908-0771 Committee Chairperson Joo-Yung Lee +1-212-908-0560 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (Jan. 31, 2014); --'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012). Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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