BB&T 2011 Annual Report Download - page 79

intentions to retire the junior subordinated debentures during 2012 and to complete the process by the end of 2013. Refer
to Note 10 “Long-Term Debt” in the “Notes to Consolidated Financial Statements” for additional information with respect
to these senior notes, 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, 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, 2011, BB&T has
approximately $43 billion of secured borrowing capacity, which represents approximately 436% of one year wholesale
funding maturities.
BB&T Corporation’s and Branch Bank’s ability to raise funding at competitive prices is affected by the rating agencies’
views of BB&T Corporation’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 Corporation and Branch Bank. The ratings
for BB&T Corporation and Branch Bank by the four major rating agencies are detailed in the table below.
Table 32
Credit Ratings of BB&T Corporation and Branch Bank
December 31, 2011
S&P Moody’s Fitch DBRS
BB&T Corporation:
Commercial Paper A-2 P-1 F1 R-1(low)
Issuer A- A2 A+ A(high)
LT/Senior debt A- A2 A+ A(high)
Subordinated debt BBB+ A3 A A
Subordinated shelf short term A-2 N/A F1 N/A
Branch Bank:
Bank financial strength N/A B- a+ N/A
Long term deposits A A1 AA- AA(low)
LT/Senior unsecured bank notes A A1 A+ AA(low)
Other long term senior obligations A A1 A+ AA(low)
Other short term senior obligations A-1 P-1 F1 R-1(middle)
Short term bank notes A-1 P-1 F1 R-1(middle)
Short term deposits A-1 P-1 F1+ R-1(middle)
Subordinated bank notes A- A2 A A(high)
Ratings Outlook:
Credit Trend Stable Stable Stable Stable
BB&T, Branch Bank and BB&T FSB have Contingency Funding Plans (“CFPs”) designed to ensure that liquidity sources
are sufficient to meet their ongoing obligations and commitments, particularly in the event of a liquidity contraction. The
CFPs are designed to examine and quantify the organization’s liquidity under various “stress” scenarios. Additionally, the
CFPs provide 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 CFPs address 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 5 “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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