BB&T 2007 Annual Report Download - page 59

universal shelf registration statement provided for the issuance of capital securities by BB&T Capital Trust I. As
of December 31, 2007, BB&T has $2.0 billion available for issuance under this universal shelf registration
statement. In late 2005, the SEC passed major changes to the securities registration process, which especially
benefited larger companies who frequently access the capital markets. The changes to the securities registration
process allow companies who have met certain eligibility requirements to file a registration statement that
immediately becomes effective and permits the company to pay the fees related to the registration of the
securities at the time of issuance. This has effectively eliminated the need to periodically file shelf registration
statements and estimate the amount of securities that will be needed in the future. The change in regulations also
has greatly enhanced the ability of BB&T to access the capital markets.
The Parent Company had five issues of subordinated notes outstanding totaling $3.1 billion at December 31,
2007. In addition, as of December 31, 2007, BB&T had $1.9 billion of junior subordinated debentures outstanding
to unconsolidated trusts. Please refer to Note 10 “Long-Term Debt” in the “Notes to Consolidated Financial
Statements” for additional information with respect to these subordinated notes and junior subordinated
debentures.
Branch Bank has several major sources of funding to meet its liquidity requirements, including access to
capital markets through issuance of senior or subordinated bank notes and institutional certificates of deposit,
access to the FHLB system, dealer repurchase agreements and repurchase agreements with commercial clients,
participation in the Treasury, Tax and Loan and Special Direct Investment programs with the Federal Reserve
Board, access to the overnight and term Federal funds markets, use of a Cayman branch facility, access to retail
brokered certificates of deposit and a borrower in custody program with the Federal Reserve Board for the
discount window.
BB&T’s and Branch Bank’s ability to raise funding at competitive prices is affected by the rating agencies’
views of BB&T’s and Branch Bank’s credit quality, liquidity, capital and earnings. Management meets with the
rating agencies on a routine basis to discuss the current outlook for BB&T and Branch Bank. As of December 31,
2007, the four major rating agencies had assigned the following ratings to BB&T and Branch Bank:
Credit Ratings of BB&T Corporation and Branch Bank
December 31, 2007
S&P Moody's Fitch DBRS
BB&T Corporation
Commercial paper A-1 P1 F1+ R-1(middle)
Issuer A+ Aa3 AA- AA(low)
LT/Senior debt A+ (P)Aa3 AA- AA(low)
Subordinated debt A A1 A+ A(high)
Trust preferred securities A- (P)A1 n/a A(high)
Branch Bank
Bank financial strength AA-/A-1+ B+ A/B n/a
Long term deposits AA- Aa2 AA AA
LT/Senior unsecured bank notes AA- Aa2 AA- AA
Other long term senior obligations A-1+ Aa2 AA- AA
Other short term senior obligations A-1+ P1 F1+ R-1(middle)
Short term bank notes A-1+ P1 F1+ R-1(middle)
Short term deposits A-1+ P1 F1+ R-1(middle)
Subordinated bank notes A+ Aa3 A+ AA(low)
Ratings Outlook:
Credit Trend Stable Stable Stable Stable
Management believes current sources of liquidity are adequate to meet BB&T’s current requirements and
plans for continued growth. See Note 6 “Premises and Equipment,” Note 10 “Long-Term Debt” and Note 15
“Commitments and Contingencies” in the “Notes to Consolidated Financial Statements” for additional
information regarding outstanding balances of sources of liquidity and contractual commitments and obligations.
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