Moody’s reviews BB&T, SunTrust

Moody's Investors Service said it placed on review for downgrade all long-term ratings of BB&T Corp. (senior debt at A2) as well as the long-term ratings and the a1 standalone baseline credit assessment of Branch Banking and Trust Co. (Aa1 for deposits).

BB&T's short-term ratings were also placed on review for downgrade with the exception of its bank-level short-term deposits, at Prime-1, and its bank-level short-term counterparty risk assessment, at Prime-1(cr), which were both affirmed.

Moody's placed on review for upgrade all long-term ratings of SunTrust Banks, Inc. (senior debt at Baa1) as well as the long-term ratings and the a3 baseline credit assessment of SunTrust Bank (A1 for deposits).

With respect to SunTrust's short-term ratings, its holding company commercial paper rating, at Prime-2, and its holding company other short-term rating, at provisional Prime-2, were affirmed.

SunTrust's bank-level short-term deposit rating, at Prime-1, and its bank-level short-term counterparty risk assessment, at Prime-1(cr), were affirmed.

SunTrust's bank-level Prime-2 and provisional Prime-2 ratings were placed on review for upgrade.

The action follows the banks' announcement that they will merge in an all-stock transaction, the agency said.

Moody's said it expects the combined firm will have a strong efficiency profile, once merger-related costs are fully accounted for.

The agency said that although BB&T has a strong acquisition integration track record, its combination with SunTrust will heighten its risk profile.

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