S&P Global (SPGI) has again lowered its rating on troubled U.S. regional bank First Republic (FRC), downgrading it deeper into junk status.
S&P added that the recent $30 billion U.S. deposit injection from 11 other U.S. banks may not be enough to solve the ongoing liquidity problems at First Republic.
S&P lowered First Republic's credit rating three notches to “B-plus” from “BB-plus” previously and warned that another downgrade is possible.
The ratings agency said that while last week’s deposit infusion should ease near-term liquidity problems, it may not solve the long-term challenges facing the bank.
The latest downgrade by S&P Global is the second ratings cut in four days at First Republic, which previously held a strong “A-minus” credit rating.
Another ratings agency, Moody's Investors Service (MCO), downgraded First Republic to junk status on March 17.
First Republic’s stock ended last week by plunging 32.8% on March 17 to trade at $23.03 U.S. per share. The share price has fallen 80% since March 8.
