First Republic Bank's rating downgraded to 'B' by Fitch amid cash crunch

The bank is currently operating at a loss and that is not sustainable over the longer term absent a balance sheet restructuring, they said

First Republic Bank has racked up another ratings downgrade, less than a week after a group of Wall Street banks agreed to contribute $30 billion of deposits to the beleaguered lender.
 

Fitch Ratings lowered First Republic Bank’s long-term issuer default rating to ‘B’ from ‘BB,’ citing its new more costly funding profile. Fitch had already slashed its ratings on the firm to junk ahead before the rescue package came through. Peer S&P Global Inc. has also downgraded the bank twice in recent days.

While First Republic Bank received a $30 billion infusion from a consortium of 11 of the largest US