First Republic to Face Second S&P Downgrade in Less Than a Week

(Bloomberg) — First Republic Bank will be downgraded again by S&P Global Inc., days after the ratings firm cut the lender to junk, according to people familiar with the matter.

Most Read from Bloomberg

S&P’s move to lower First Republic’s long-term issuer credit rating to B+ from BB+ could be disclosed as early as Sunday, said the people, who asked not to identified ahead of a public announcement. A representative for S&P didn’t immediately reply to a request for comment.

“Following Thursday’s uninsured deposit of $30 billion by the 11 largest banks in the country, together with cash on hand, First Republic Bank is well positioned to manage short-term deposit activity,” the company said in an emailed statement. “This support reflects confidence in First Republic and its ability to continue to provide unwavering exceptional service to its clients and communities.”

S&P downgraded First Republic to junk on Wednesday, lowering its rating to BB+ from A-. Moody’s followed suit on Friday in cutting the bank below investment grade.

Most Read from Bloomberg Businessweek

©2023 Bloomberg L.P.