First Republic Bank’s A-minus credit on review for possible downgrade by S&P over concerns about volatile deposit flows

First Republic Bank’s FRC A-minus rating was placed on review for a possible downgrade by S&P Global Ratings on Tuesday, with the agency concerned about volatile deposit flows in the wake of the government’s closure of two banks in the last week. “Consequently, we expect the bank to increase wholesale borrowings to shore up its on-balance-sheet liquidity, which would likely weigh on its already modest profitability,” the agency said in a statement. S&P has placed the credit on CreditWatch Negative, with the latter reflecting the potential for its funding profile, revenue stability and profitability to deteriorate. While…