Fitch downgrades First Republic’s IDR to ‘B’ from ‘BB’

Fitch Ratings has downgraded First Republic Bank’s Long-Term Issuer Default Rating, or IDR, to ‘B’ from ‘BB’. The Rating Watch Negative is maintained on FRC‘s ratings. This follows Fitch’s recent action "Fitch Downgrades First Republic to ‘BB’; Places Ratings on Negative Watch" published on fitchratings.com on March 14. "The downgrade reflects the current financial profile and challenges FRC faces from both a funding and earnings perspective. The bank’s funding mix has materially altered over the last two weeks as withdrawn deposits have been replaced with costly wholesale borrowings, primarily from the Fed Discount Window," Fitch stated.