Fitch Upgrades BB&T Corporation Long-Term Ratings to 'AA-'.

NEW YORK -- Fitch Ratings has upgraded the long-term and short-term ratings of BB&T Corporation (BB&T) to 'AA-/F1+' from 'A+/F1'. The Rating Outlook is Stable. Fitch has also upgraded the long-term ratings of BB&T's bank subsidiaries, Branch Banking & Trust Company and Branch Banking and Trust Company of South Carolina, while assigning ratings to Branch Banking and Trust Company of Virginia. A complete list of ratings follows this release.

BB&T has built a significant regional banking franchise, which has consistently delivered solid operating performance while maintaining sound credit fundamentals. BB&T has developed a reasonably diverse revenue stream, as the company has developed several non-banking businesses, such as insurance services, capital markets, mortgage banking, and trust services, which have been steady contributors to earnings. Further, the company has been successful at cross-selling its extensive product set across its broad customer base. BB&T has also demonstrated itself to be an adept acquirer, as the company has been able to integrate its many acquisitions with minimal disruption to operations.

Asset quality has remained relatively strong due to the low risk profile of the company's loan portfolio. BB&T's strong relative credit performance is attributed to its conservative underwriting and the granularity of its loan book, both of which helped the company avoid many of the problems that have befallen its peers during the past credit cycle. Going forward, Fitch expects BB&T to continue to differentiate itself positively from its peers in terms of credit performance.

BB&T's capitalization is viewed as sound considering the company's consistent earnings performance and risk profile. Fitch expects the company to maintain its current capital discipline, particularly in terms of tangible capital, as BB&T renews its bank and thrift acquisitions in 2006.

Fitch upgrades the following ratings:

BB&T Corporation

--Senior long-term to 'AA-' from 'A+';

--Subordinated debt to 'A+' from 'A';

--Short-term to 'F1+' from 'F1';

--Individual to 'A/B' from 'B';

--Rating Outlook Stable.

Branch Banking and Trust Company

--Long-term deposits to 'AA' from 'AA-';

--Senior long-term to 'AA-' from A+;

--Individual to 'A/B' from 'B';

--Rating Outlook Stable.

Branch Banking and Trust Company of South Carolina

--Long-term deposits to 'AA' from 'AA-';

--Senior long-term to 'AA-' from 'A+';

--Individual to 'A/B' from 'B';

--Rating Outlook Stable.

Fitch assigns the following ratings:

Branch Banking and Trust Company of Virginia

--Long-term deposits 'AA';

--Short-term deposits 'F1+';

--Senior long-term 'AA-';

--Short-term 'F1+';

--Individual 'A/B';

--Support '4';

--Rating Outlook Stable.

Fitch affirms the following ratings:

BB&T Corporation

--Support '5'.

Branch Banking and Trust Company

--Short-term deposits 'F1+';

--Short-term 'F1+';

--Support '4'.

Branch Banking and Trust Company of South Carolina

--Short-term deposits 'F1+';

--Short-term 'F1+';

--Support '4'.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.