US' First Republic Bank falls 20%, rating agency downgrades
Fitch Ratings downgrades bank’s long-term rating to 'BB' from 'A-'; ratings placed on negative watch
By Ovunc Kutlu
ISTANBUL (AA) - US-based First Republic Bank (FRC) saw its shares fall more than 20% Wednesday, while Fitch Ratings lowered its grade.
Shares of the full-service bank and wealth management company's plummeted 25.7% to as low as $29.45 by mid-day after closing at $39.63 a share the previous day.
Fitch Ratings said it downgraded FRC’s long-term rating to 'BB' from 'A-' and short-term rating to 'B' from 'F1,' adding ratings are placed on negative watch.
The agency said it viewed FRC's deposit base as "concentrated" given its focus on banking wealthy and financially sophisticated customers in select markets in the US.
Moody's placed long-term ratings and assessments of FRC on review for downgrade Monday, saying weaknesses in the bank and its liquid asset profiles are offset by additional borrowing capacity.
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