First Republic Downgraded by Fitch Amid Cash Crunch
- Fitch says First Republic’s balance sheet ‘not sustainable’
- Ratings firm continues to monitor bank for further downgrades
A First Republic Bank branch in Santa Monica, California.
Photographer: Lauren Justice/BloombergThis article is for subscribers only.
First Republic Bank has racked up another ratings downgrade, less than a week after a group of Wall Street banks agreed to contribute $30 billion of deposits to the beleaguered lender.
Fitch Ratings lowered First Republic Bank’s long-term issuer default rating to ‘B’ from ‘BB,’ citing its new more costly funding profile. Fitch had already slashed its ratings on the firm to junk ahead before the rescue package came through. Peer S&P Global Inc. has also downgraded the bank twice in recent days.