BB&T 2008 Annual Report Download - page 68

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
Bank, 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 Bank for the
discount window. As of December 31, 2008, BB&T has approximately $44 billion of secured borrowing capacity,
which represents approximately 242% of one year wholesale funding maturities.
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. The ratings for
BB&T and Branch Bank by the four major rating agencies are detailed in the table below.
Table 23
Credit Ratings of BB&T Corporation and Branch Bank
December 31, 2008
S&P Moody’s Fitch DBRS
BB&T Corp.
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 BBB+ (P) A1 NA A (high)
Branch Bank
Bank financial strength AA-/A-1+ B+ A/B NA
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(high)
Short term bank notes A-1+ P1 F1+ R-1(high)
Short term deposits A-1+ P1 F1+ R-1(high)
Subordinated bank notes A+ Aa3 A+ AA(low)
Ratings Outlook:
Credit Trend Stable Negative Stable Stable
BB&T and Branch Bank have Contingency Funding Plans (“CFP”) designed to ensure that liquidity sources
are sufficient to meet its ongoing obligations and commitments, particularly in the event of a liquidity contraction.
The CFP is designed to examine and quantify the organization’s liquidity under various “stress” scenarios.
Additionally, the CFP provides a framework for management and other critical personnel to follow in the event of
a liquidity contraction or in anticipation of such an event. The CFP addresses authority for activation and decision
making, liquidity options, and the responsibilities of key departments in the event of a liquidity contraction.
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.
Contractual Obligations, Commitments, Contingent Liabilities, Off-Balance Sheet
Arrangements, and Related Party Transactions
The following table presents, as of December 31, 2008, BB&T’s significant fixed and determinable contractual
obligations by payment date. The payment amounts represent those amounts contractually due to the recipient.
The table excludes liabilities recorded in connection with FASB Interpretation No. 48 “Accounting for
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