First Republic faces second S&P downgrade in less than a week

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

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

“With $30 billion of uninsured deposits held by the nation’s 11 largest as of Thursday, as well as cash on hand, First Republic Bank is well positioned manage short-term deposit activity,” the company said in an emailed statement. “This endorsement reflects the confidence in First Republic and its ability to provide incredible exceptional service to its customers and communities.”

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

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