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.
For further details see:
First Republic Bank expected to be cut again by S&P Global - report