CREDIT APPROVAL MEMORANDUM

Borrower:	Wells Fargo	Ticker:	WFC
Sector:	Financials	Date:	2026-02-19
Internal Rating:	A	Score:	82/100
PD Rating:	0.05% - Very Low	Regulatory:	Pass

Executive Summary

This memorandum recommends approval of the proposed credit facility for Wells Fargo. The company exhibits solid fundamentals with stable cash flow generation. Operational efficiency programs are yielding margin improvements.

Key Credit Metrics

Metric	Value	Guideline/Covenant
Net Leverage (Debt/EBITDA)	3.3x	< 3.5x
Interest Coverage (EBITDA/Int)	10.3x	> 5.0x
Liquidity Score	85.6	> 70

Financial Analysis

Revenue & Earnings: The company generated $84.4B in revenue in 2024, with EBITDA of $33.1B. Forecasts indicate continued growth.

Liquidity: The company maintains a strong liquidity profile with access to capital markets and revolving credit facilities.

Cash Flow: Free Cash Flow conversion remains strong, supporting debt service and capital returns.

Risk Factors

Macroeconomic volatility and interest rate sensitivity remain key risks. Competitive pressures in the sector could impact market share.
Macroeconomic headwinds impacting consumer spending.
Technological disruption from competitors.

Recommendation

Approve. The risk/reward profile is favorable.

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Credit Officer