UPDATE 1-Raymond James cuts BB&T to "market perform"

April 13 (Reuters) - Raymond James downgraded BB&T Corp (BBT.N: Quote, Profile, Research) to "market perform" from "outperform," and said it is concerned with high levels of construction and commercial real estate loans at the bank, and rising unemployment rate in its footprint.

Analyst Michael Rose also expressed concern about the company's ability to sustain the current dividend level, joining a slew of analysts recently predicting a divided cut at the large Southeastern U.S. regional bank.

Although BB&T remains a fundamentally sound, best-in-breed institution with above-average risk management skills and intact core earnings power, the problems in the company could limit near-term appreciation in its shares, Rose wrote in a note to clients.

On Sunday, Barron's said shares of BB&T could come under pressure because economic weakness in its mid-Atlantic and southeast strongholds could require the bank to set aside more capital to cover rising losses in its residential and consumer portfolios. [nN12328608]

Shares of the Winston-Salem, North Carolina-based bank were trading down 55 cents at $19.76 Monday on the New York Stock Exchange. They fell as much as 8 percent to $18.72 earlier in the day.

(Reporting by Anurag Kotoky in Bangalore)

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