First Republic Bank considering possible sale, per BBG

• Rating agencies S&P Global and Fitch downgraded First Republic’s credit rating to junk status.
• The bank is now considering various options, including a sale and increased liquidity, Bloomberg reported.
• It could attract interest from major lenders if it goes on sale.

First Republic Bank is considering various options, including a sale, Bloomberg reported Wednesday, citing people with knowledge of the matter.

The bank should attract interest from larger lenders if it is put up for sale, according to Bloomberg. The San Francisco-based lender is also exploring options to increase liquidity, according to the outlet.

Ratings agencies S&P Global and Fitch had downgraded the First Republic’s credit rating to junk status earlier on Wednesday over concerns that depositors could withdraw funds from the lender.

First Republic has been reassuring customers about its liquidity since the implosion of Silicon Valley Bank, which has raised concerns about the financial health of regional banks.

On Sunday, First Republic said it was receiving $70 billion in additional funding from the Federal Reserve and JPMorgan Chase after its stock price plummeted amid the Silicon Valley Bank implosion.

“We believe the risk of deposit outflows is elevated at First Republic Bank despite the actions of federal banking regulators and that the bank is actively increasing its borrowing availability to mitigate the risk associated with last week’s bank failures,” they said. writes S&P Global Ratings analyst Nicholas Wetzel. and Rian Pressman.

First Republic’s stock price closed 21.4% lower at $31.16 apiece on Wednesday. They are down 74% since the start of the year.

First Republic Bank did not immediately respond to Insider’s request for comment sent outside of normal business hours.