More bank downgrades 22 June 2009 4:30PM Philip Bayley S&P resolved its CreditWatch with negative implications on its long-term counterparty rating assigned to Wells Fargo & Co., when it simultaneously lowered its ratings and revised its outlooks on 22 US banks, last week. The rating was lowered one notch to 'AA-'and assigned a negative outlook. The counterparty ratings assigned to subsidiary, Wachovia Bank N.A., are AA/Negative/A-1+. S&P said the US banking industry is in transition and will likely undergo material structural changes. S&P's rating actions reflect its belief that operating conditions for the industry will become less favourable than they were in the past, characterised by greater volatility in financial markets during credit cycles and tighter regulatory supervision. The changes also reflect S&P's ongoing broad-ranging reassessment of industry risk for US financial institutions.