First Republic likely to weather second S&P downgrade within a week: Report

First Republic Bank is expected to face a second downgrade by S&P Global Inc despite a $30 billion rescue from a group of 11 banks, according to sources cited by Bloomberg.

The bank’s long-term issuer credit rating is predicted to drop from B+ to BB+, after being downgraded to A- last week by the same agency, citing increasing concerns over the bank. The second downgrade may be publicly disclosed on Sunday.

Last week, major banks including Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank, State Street, Truist Bank, and U.S. Bank, announced plans to inject $30 billion into the First Republic Bank to help it recover from a difficult situation.

Despite the assistance, nearly 71% of the bank’s value evaporated last week. Federal officials helped coordinate the rescue after much of the bank’s woes appeared to stem from similarities with Silicon Valley Bank, which was taken over by federal regulators on March 10.

First Republic Bank, which focuses on private banking and wealth management, is the 14th-largest bank in the United States.

According to CNN, almost two-thirds of First Republic’s deposits were uninsured, although depositors were assured by the government that they would have access to their money in the case of collapse.

Market uncertainty surrounding the Silicon Valley Bank collapse has affected other banks, such as Swiss lender Credit Suisse, and has intensified pre-existing problems, as reported by the Washington Examiner.