International credit rating agency Standard & Poor’s (S&P) and Fitch Ratings announced that California-based First Republic Bank’s credit rating was downgraded.
In a statement made by S&P, it was reported that First Republic Bank’s long-term credit rating was downgraded from “A-” to “BB+”.
In the statement, it was noted that the risk of deposit outflow at First Republic Bank is thought to have increased despite the measures taken by federal regulatory agencies.
In a statement made by Fitch, it was stated that First Republic Bank’s long-term credit rating was downgraded from “A-” to “BB” and its short-term rating from “F1” to “B”.
In the statement, which stated that the bank’s credit rating is kept under “negative” monitoring, it was stated that the decision on the credit rating reflects the opinion on the funding and liquidity profile of First Republic Bank in the current environment.
First Republic Bank’s credit downgrades come amid growing concerns over the banking industry following the bankruptcy of Bank of Silicon Valley (SVB) and Signature Bank.
Shares of First Republic Bank fell more than 20 percent after the credit rating downgrades.
Credit rating agency Moody’s also announced yesterday that it is monitoring the credit ratings of 6 US banks, including First Republic Bank, for a possible downgrade.
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