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Wells Fargo Credit Profile Hurt by Heinz Deal, Moody’s Says

Wells Fargo & Co.’s role in helping to finance the $23 billion purchase of H.J. Heinz Co. hurts its credit profile because it shows the risk of the lender’s push into investment banking, Moody’s Investors Service Inc. said.

The Heinz deal may indicate that Wells Fargo, seeking to expand its securities unit, is willing to offer larger loans to win more profitable advisory fees, Moody’s analysts led by Allen Tischler wrote in the report. Clients often demand debt financing before signing banks up as advisers, Moody’s said.