(Finance) – Fitch Ratings calls again the franchise and the liquidity profile Of First Republic Bank as “significantly weakened beginning of last week” and will continue to monitor the US bank’s funding and liquidity profile to assess the stability of the customer deposit base, the effect of yesterday’s deposit package on customer deposit flows, as well as trends of the liquidity available from primary and contingent sources.
This can be read in a note following the massive cash injection implemented yesterday by the US banking giants. As many as 11 banks – led by JPMorgan Chase, citigroup And Morgan Stanleydeposited $30 billion in First Republic Bank to bolster liquidity and restore depositor confidence.
First Republic Bank’s ratings therefore stand “on watch” after Wednesday’s downgrade to “BB”. Fitch will continue to evaluate the situation, with a “rating action” which could arrive in the next few days.