Traders gather at the post where First Republic Bank as the stock is halted from being traded on the floor of the New York Stock Exchange in New York City, U.S., March 15, 2023. REUTERS/Brendan McDermid, citing deterioration in the bank's financial profile and challenges faced by the lender due to increased reliance on funding amid deposit outflows.
The agency cut the bank's long-term issuer rating and local currency subordinate ratings to B2 from Baa1 and long-term local currency bank deposit rating to Baa3 from A1, among others. The outlook on the issuer rating and long-term bank deposits of First Republic Bank remain under review, Moody's said.
Moody's said it believes the bank's high cost of borrowings, along with the "high proportion of fixed rate assets at the bank, is likely to have a large negative impact on First Republic's core profitability in coming quarters." "In addition, the rating agency noted that while the news of the banking consortium's deposits is positive in the short-run, the longer-run path for the bank back to sustained profitability remains uncertain."
FRC already C rating now
How is this even helpful . I wonder why their ratings are even relevant anymore. Why should investors even bother looking at their ratings.
Great timing, like usual.
Glad they’re on top of things
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