S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problems

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S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problems
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First Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems.

A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File Photosaw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems.

The agency said First Republic likely faced "high liquidity stress with substantial outflows" last week, reflecting its need for more deposits, increased borrowings from the Federal Reserve, and the suspension of its common stock dividend.

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