DBRS Places SunTrust Banks, Inc.’s Ratings Under Review Positive; Long-Term Issuer Rating at ‘A’

DBRS, Inc. (DBRS) placed the ratings of SunTrust Banks, Inc. (SunTrust or the Company) and its related subsidiaries, including the Company’s Long-Term Issuer Rating of ‘A’ and Short-Term Issuer Rating of R-1 (low), Under Review with Positive Implications. The ratings action follows the announcement that SunTrust has agreed to a merger of equals (MOE) with BB&T Corporation (BB&T: rated A (high) with a Positive trend).

KEY RATING CONSIDERATIONS
The Under Review with Positive implications reflects DBRS’s view that SunTrust will benefit from merging with BB&T, a more highly rated financial institution. Moreover, if executed well, the MOE creates a very strong franchise capable of generating compelling financial results through a highly diversified business model. DBRS expects to conclude the review in 4Q19 upon the close of the transaction.

RATING DRIVERS
If the MOE closes as expected, SunTrust’s ratings would likely be equalized with BB&T’s. If the MOE does not close, the ratings would likely revert back to Stable.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Global Methodology for Rating Banks and Banking Organisations (July 2018) which can be found on our website under Methodologies & Criteria.

The primary sources of information used for this rating include company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com.

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA