FRC - First Republic Bank expected to be cut again by S&P Global - report

2023-03-19 15:11:31 ET

First Republic Bank ( NYSE: FRC ) is expected to be downgraded by S&P Global again after the ratings firm cut the troubled lender to junk on Wednesday.

S&P will downgrade First Republic's long-term issue credit rating to B+ from BB+ as early as Sunday, according to a Bloomberg report , which cited people familiar.

The move comes as credit ratings firm Moody's Investors Service on Sunday d owngraded all long-term ratings and assessments of First Republic ( FRC ) and may cut them further as the bank faces pressures of deposit outflows and higher-cost funding as the value of its assets decline

The lower credit ratings reflect "the deterioration in the bank's financial profile and the significant challenges First Republic ( FRC ) faces over the medium term in light of its increased reliance on short-term and higher cost wholesale funding due to deposit outflows," Moody's said .

More on the recent banking shock and First Republic:

• Warren Buffett talking to Biden administration on banking crisis.
• On Friday, First Republic ( FRC ) stock extended its decline after talks of private share sales were reported
• First Republic ( FRC ) stock slumped after suspending dividen d
• First Republic stock gained after getting $30B in deposits from banks.
• Also last week, the bank was reported to be considering strategic options, including a potential sale.

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