Could 2 (Reuters) – S&P International on Tuesday slashed First Republic Financial institution’s (FRC.N) credit standing deeper into junk territory after California banking regulators seized the U.S. lender and offered its belongings.
S&P reduce its score to ‘CC’ from ‘B+’ and stated it expects default to be a “digital certainty”.
On Monday, JPMorgan Chase & Co (JPM.N) struck a cope with the U.S. Federal Deposit Insurance coverage Corp (FDIC) to take management of a lot of the San Francisco-based financial institution’s belongings.
Since JPMorgan assumed the substantial majority of First Republic’s belongings, it’s probably that the lender would default on some other senior monetary obligations given what can be an inadequate remaining asset base, S&P stated.
S&P additionally lowered credit score rankings on First Republic’s subordinated debt and most popular inventory to ‘D’ from ‘B-.’
Reporting by Jyoti Narayan in Bengaluru; Enhancing by Dhanya Ann Thoppil
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