Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 335

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 335
---
 of a portion of an outstanding tranche of the long-term debt of the Parent Company (as may be permitted by the terms of each respective series), and the redemption of preferred stock. See “Note 22. Parent Company Financial Information” for additional information regarding dividends from subsidiaries and debt transactions.

Access to funding at the Parent Company is more sensitive to market disruptions. Therefore, Truist manages cash levels at the Parent Company to exceed a minimum of 12 months of projected cash outflows. In determining the buffer, Truist considers cash requirements for common and preferred dividends, unfunded commitments to affiliates, serving as a source of strength to Truist Bank, and being able to withstand sustained market disruptions that could limit access to the capital markets. At December 31, 2024, the Parent Company held cash on hand to meet these requirements.

Credit Ratings

Credit ratings are forward-looking opinions of rating agencies as to the Company’s ability to meet its financial commitments and repay its securities and obligations in accordance with their terms of issuance. Credit ratings influence both borrowing costs and access to the capital markets. The Company’s credit ratings are continuously monitored by the rating agencies and are subject to change at any time. As Truist seeks to maintain high-quality credit ratings, management meets with the major rating agencies on a regular basis to provide financial and business updates and to discuss current outlooks and trends. See Item 1A, “Risk Factors” for additional information regarding factors that influence credit ratings and potential risks that could materialize in the event of downgrade in the Company’s credit ratings.

Truist Financial Corporation   81

The following table presents the credit ratings and outlooks of the Parent Company and Truist Bank as of December 31, 2024:Table 38: Credit Ratings of Truist Financial Corporation and Truist Bank Moody’sS&PFitchDBRS MorningstarTruist Financial Corporation:IssuerBaa1A- / A-2A / F1AAL / R-1MSenior unsecuredBaa1A-A-AALSubordinatedBaa1BBB+BBB+AHPreferred stockBaa3(hyb)BBB-BBB-ALTruist Bank:IssuerA3A / A-1A / F1AA / R-1HSenior unsecuredA3AAAADepositsA1/P-1NAA+ / F1AASubordinated(P) A3A-A-AALRatings outlook:Credit