Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 6

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 6
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 about the credit quality of a debt security. We determine the credit rating of a security according to the lowest credit rating made available by national recognized statistical rating organizations (NRSROs). Debt securities rated investment grade, that is those with ratings similar to BBB-/Baa3 or above, as defined by NRSROs, are generally considered by the rating agencies and market participants to be low credit risk. Conversely, debt securities rated below investment grade, labeled as “speculative grade” by the rating agencies, are considered to be distinctively higher credit risk than investment grade debt securities. For debt securities not rated by NRSROs, we determine an internal credit grade of the debt securities (used for credit risk management purposes) equivalent to the credit ratings assigned by major credit agencies. Substantially all of our debt securities were rated by NRSROs at March 31, 2025, and December 31, 2024.Table 3.4 shows the percentage of fair value of AFS debt securities and amortized cost of HTM debt securities determined to be rated investment grade, inclusive of securities rated based on internal credit grades.Table 3.4:  Investment Grade Debt SecuritiesAvailable-for-SaleHeld-to-Maturity($ in millions)Fair value % investment gradeAmortized cost% investment gradeMarch 31, 2025Total portfolio (1)$176,229 99 %$227,331 99 %Breakdown by category:Securities of U.S. Treasury and federal agencies (2)$159,878 100 %$194,402 100 %Securities of U.S. states and political subdivisions11,539 99 18,119 100 Collateralized loan obligations (3)2,475 100 11,590 100 All other debt securities (4)2,337 89 3,220 59 December 31, 2024Total portfolio (1)$162,978 99 %$235,043 99 %Breakdown by category:Securities of U.S. Treasury and federal agencies (2)$146,314 100 %$197,777 100 %Securities of U.S. states and political subdivisions12,035 99 18,210 100 Collateralized loan obligations (3)2,202 100 15,904 100 All other debt securities (4)2,427 89 3,152 61 (1