(Finance) – Discount for First Republic Bankwhich trades at a loss of 14.47% on previous values, penalized by a new downgrading.
For the second time in a few days, the agency S&P Global cut its rating to “B+” from “BB+”, keeping the outlook at “Creditwatch Negative”. The decision, made yesterday, comes after S&P downgraded the bank’s credit rating to “BB+” from “A-” on Wednesday.
In explaining the reason for the action, S&P said First Republic’s rating “remains on negative CreditWatch, indicating that we may further downgrade if the bank is unable to demonstrate progress in stabilizing deposits and recovering the value of the franchises that, in our view, have likely been eroded.”
The trend of First Republic Bank in the week, compared toS&P-500notes a lower relative strength of the stock, which could fall prey to sellers ready to take advantage of potential weaknesses.
Analyzing the scenario of First Republic Bank there is an extension of the bearish phase at the test of the USD 17.93 support. First resistance at 21.52. Expectations are for an extension of the negative line towards new lows at 16.17.