Moody’s changes BB&T to negative, reviews Susquehanna

Moody's Investors Service said it affirmed its ratings on BB&T Corp. and its bank subsidiary, Branch Banking and Trust Co., following BB&T's announcement that it agreed to acquire Susquehanna Bancshares, Inc.

The outlook was changed to negative from stable.

BB&T is rated A2 for senior debt and its bank subsidiary is rated B- for standalone bank financial strength, mapping to an a1 baseline credit assessment, and A1 for long-term deposits. BB&T's Prime-1 ratings for short-term obligations, at both the bank and holding company, were affirmed.

In a related action, Moody's placed all of its ratings on Susquehanna and its bank subsidiary under review for possible upgrade. Susquehanna is rated Baa2 for senior debt and its bank subsidiary, Susquehanna Bank, is rated C- for standalone bank financial strength, mapping to a baa1 baseline credit assessment, and Baa1 for long-term deposits. Susquehanna Bank's Prime-2 short-term rating was also placed on review for possible upgrade.

These actions follow BB&T's announcement that it will acquire Susquehanna in a cash and stock transaction scheduled to close in the second half of 2015.

After the transaction is completed, Susquehanna's bank and holding company will be merged into BB&T's bank and holding company, respectively. As such, Moody's said it expects to move Susquehanna's ratings to match those of BB&T at that time.

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