S&P Global Ratings has upgraded Wells Fargo’s long-term issuer credit rating to A- from BBB+, citing significant improvements in the bank’s governance, risk culture and operational oversight. The upgrade follows the termination of the US Federal Reserve’s seven-year asset cap in June 2025, which had restricted the bank’s balance-sheet growth. S&P’s assessment indicates that improvements in risk and control frameworks have supported Wells Fargo’s ability to expand its business while maintaining stronger oversight.
Since the asset cap was removed, Wells Fargo has expanded its commercial lending, credit-card and auto-financing portfolios, while also strengthening its capital-markets activities. Total assets increased 15% year-on-year, while return on tangible common equity reached 16.1% through mid-2026. The bank’s Common Equity Tier 1 ratio stood at 10.3%, deposits represented 72% of total liabilities, and its liquidity coverage ratio was 119%. S&P expects asset growth to moderate towards industry averages by 2027 and assigned a stable outlook to the bank.
The rating action highlights how risk management, governance and operational controls can influence a bank’s credit profile. Wells Fargo has spent several years strengthening its risk and control environment following regulatory scrutiny, and S&P’s assessment connects these improvements with greater capacity for controlled business expansion. The development also demonstrates the importance of embedding risk culture and operational oversight into growth strategies rather than treating risk management as a separate compliance function.
Want to deepen your expertise beyond today’s news?
Explore practical certification courses designed for banking, risk, insurance, compliance, ESG, AI, and emerging technologies professionals.
Learn from industry experts and earn certifications from RMAI and BFSI Sector Skill Council of India.
#Riskmanagementnews
