First Republic Bank’s A-minus credit under review for possible downgrade by S&P on concerns about volatile deposit flows

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First Republic Bank’s FRC -minus rating was placed on for a possible downgrade by S&P Global Ratings on Tuesday after the agency raised concerns about volatile deposit flows in the wake of the government’s shutdown of the two banks last week . “Consequently, we expect the bank to increase wholesale lending to shore up its on-balance-sheet liquidity, which would put pressure on already modest profitability,” the agency said in a statement. S&P placed the credit at Creditwatch negative, with the latter indicating the potential for deterioration of its funding profile, revenue stability and profitability. Whereas…

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