This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Moody's Cuts BB&T Ratings One Notch

NEW YORK (AP) ¿ Moody's Investors Service late Tuesday downgraded the ratings of BB&T Corp. due to concern about the regional bank's significant exposure to weakening commercial and residential real estate loans.

Moody's cut the holding company's long-term ratings by one notch to "A1" from "Aa3," and the bank financial strength rating of its operating bank and thrift to "B'' from "B+."

The long-term debt and deposit ratings of the lead bank and its smaller thrift were affirmed at "Aa2." The outlook on the investment-grade ratings is negative.

The ratings action was a result of Moody's belief that the bank's real estate portfolio will continue to come under pressure as the housing market and the broader economy remain weak.

Moody's expects BB&T to cut its dividend if credit deteriorates further. But even if the bank reduces its dividend, rising credit costs could hurt BB&T's capital position this year, the ratings service said.

Still, Moody's said the bank is strong enough to absorb several billion dollars of additional credit costs over a 12 to 18 month period without further negative rating pressure.

On Friday, the Winston-Salem, N.C.-based bank posted a 37 percent drop in first-quarter profit, as loans that were overdue or written off as unpaid surged and the bank set aside more money to cover souring credit. But the results beat Wall Street's expectations.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs