Fitch Ratings downgraded the long- and short-term issuer default ratings (IDRs) of Wells Fargo & Company (WFC) to A+/F1 from AA-/F1+. Fitch has also downgraded the LT IDR of Wells Fargo Bank (WFBNA) to AA- from AA. WFBNA’s ST IDR is affirmed at F1+. The rating outlook is stable.

The rating action reflects Fitch’s view that WFC’s earnings profile will be diminished from historical levels and that improved risk governance and controls will take longer than anticipated. Historically, WFC’s AA- LT IDR was primarily supported by its superior earnings profile and risk management that steered the company well through the financial crisis.

Nonetheless, Fitch does not believe WFC’s earnings profile will continue to exceed peers to the same degree as in the past, and acknowledges several notable missteps in the company’s risk controls that warrant the downgrade.

Following the rating action, at the new rating levels Fitch said WFC remains one of the highest-rated banks in the world, supported by its solid franchise, capital and liquidity profiles.