DBRS cuts BB&T

DBRS said it downgraded the issuer and senior debt ratings of BB&T Corp. to A (high) from AA (low) and its short-term instruments rating to R-1 (low) from R-1 (middle).

DBRS also said it downgraded the deposits and senior debt ratings of Branch Banking and Trust Co. to AA (low) from AA and its short-term instruments rating to R-1 (middle) from R-1 (high).

The agency also said it confirmed the stable trend on the short-term instruments rating of BB&T and changed the trend for all other ratings to stable.

The action followed a detailed review of the company's operating performance, financial fundamentals and future prospects, the agency said.

The downgrade reflects a view that BB&T's financial fundamentals have weakened relative to its former rating range as it continues to manage through its elevated credit quality issues and associated credit costs, DBRS said.

The stable trend reflects DBRS's greater comfort with BB&T's ability to work through its credit issues, particularly given its now more aggressive asset disposition strategy, the agency said.

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