Fitch Rates Wells Fargo Real Estate Investment Corporation's Preferred Stock 'BBB+'

CHICAGO--()--Fitch Ratings has assigned a 'BBB+' rating to the $240 million in preferred stock issued by Wells Fargo Real Estate Investment Corporation (WFREIC), an indirect subsidiary of Wells Fargo & Company (rated 'AA-/F1+' by Fitch). The cumulative perpetual preferred stock will pay a dividend of 6.375% on a cumulative basis, and is callable beginning in December 2019.

KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by WFC, and its subsidiaries by various issuing vehicles are all notched down from WFC's Viability Rating (VR) of 'AA-' in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles. The securities are notched twice for loss severity given their cumulative nature and twice for non-performance.

Fitch did not assign a standalone VR to WFREIC because from a ratings perspective it is not considered a standalone entity, but rather reliant on WFC and Wells Fargo Bank N.A. for administrative services and the servicing of the loans. WFREIC operates as a REIT for U.S. federal income tax purposes.

RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The ratings of subordinated debt and other hybrid capital issued by WFC and its subsidiaries are primarily sensitive to any change in WFC's VR.

Fitch has assigned the following rating:

Wells Fargo Real Estate Investment Corporation

--Preferred stock at 'BBB+'.

Additional information is available on www.fitchratings.com.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'Assessing and Rating Bank Subordinated and Hybrid Securities Criteria' (Jan. 31, 2014).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Assessing and Rating Bank Subordinated and Hybrid Securities Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732137

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=943255

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Contacts

Fitch Ratings
Primary Analyst
Julie Solar
Senior Director
+1-312-368-5472
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Christopher Wolfe
Managing Director
+1-212-908-0771
or
Committee Chairperson
Joo-Yung Lee
Managing Director
+1-212-908-0560
or
Media Relations
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Julie Solar
Senior Director
+1-312-368-5472
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Christopher Wolfe
Managing Director
+1-212-908-0771
or
Committee Chairperson
Joo-Yung Lee
Managing Director
+1-212-908-0560
or
Media Relations
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com