Moody's cuts BB&T

Moody's Investors Service said it downgraded BB&T Corp.'s senior debt rating to A2 from A1, along with subsidiary Branch Banking and Trust Co.'s long-term deposit rating to A1 from Aa3.

The bank's and the holding company's short-term ratings were both affirmed at prime-1.

The outlook is stable.

This concludes the review for possible downgrade that began in November, Moody's said.

The one-notch downgrade reflects a number of challenges that, combined, reflect a modestly weaker credit profile, Moody's said.

These challenges include BB&T's transition away from real estate and into other asset classes, its greater reliance on wholesale funding than its regional bank peers and the lingering credit costs from its historic commercial real estate concentration, the agency said.

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