Overview

Click to expand overview
First Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big On Ma, S&P Global Ratings lowered its long-term issuer credit rating on First Republic Bank to'B'from'BB'.We also lowered our senior unsecured issue rating to 'B', our subordinated issue rating to 'B-', and our preferred stock issue rating to 'CCC'. The ratings remain on CreditWatch with negative Ver más According to the latest reports, S&P has downgraded First Republic Bank’s rating to “junk.” S&P analysts Nicholas Wetzel and Rian Pressman wrote: “The bank’s S&P Global Ratings downgraded its issuer credit rating on First Republic Bank by four notches to BB-plus from A-minus, placing it in speculative grade, or ‘junk,’ status, in a move that came First Republic Bank was cut to junk by S&P Global Ratings and Fitch Ratings amid concern that clients pull holdings from the lender, even after U.S. regulators First Republic Bank (NYSE:FRC) opened the day's trade with a 26% drop after S&P cut its rating to Junk on outflow risk. The bank's long-term issuer credit rating was

S&P Downgrades First Republic Bank Rating to Junk: What You Need to Know

First Republic Bank is facing increased scrutiny after S&P Global Ratings downgraded its credit rating deeper into junk status. This decision follows the recent $30 billion deposit infusion from 11 big banks, raising concerns about the lender's stability. According to the latest reports, S&P has downgraded First Republic Bank’s rating to “junk.”

S&P Global Lowers First Republic Bank Rating

On Ma, S&P Global Ratings lowered its long-term issuer credit rating on First Republic Bank to 'B' from 'BB'. We also lowered our senior unsecured issue rating to 'B', our subordinated issue rating to 'B-', and our preferred stock issue rating to 'CCC'. The ratings remain on CreditWatch with negative implications. This significant downgrade reflects concerns about the bank's financial outlook and its ability to manage ongoing challenges.

Why the Downgrade?

S&P analysts Nicholas Wetzel and Rian Pressman wrote that First Republic Bank's challenges stem from concerns that clients are pulling holdings from the lender, even after U.S. regulators intervened. This outflow risk, compounded by broader economic uncertainty, led to the decision to downgrade the bank's rating.

The bank's S&P Global Ratings downgraded its issuer credit rating on First Republic Bank by four notches to BB-plus from A-minus, placing it in speculative grade, or ‘junk,’ status, in a move that came amid concerns about the bank's long-term viability.

Market Reaction

First Republic Bank (NYSE:FRC) opened the day's trade with a significant 26% drop after S&P cut its rating to Junk on outflow risk. The bank's long-term issuer credit rating was impacted negatively by this development.

Fitch Joins S&P in Downgrading First Republic

It's not just S&P; First Republic Bank was also cut to junk by Fitch Ratings amid concern about continued client withdrawals. This double downgrade further intensifies the pressure on the bank to stabilize its financial position and reassure investors.

Ver más details are emerging about the specific reasons behind the downgrade, focusing on potential risks facing the bank.

Top Sources

Related Articles