S&P downgrades Bloomberg's First Republic Bank to junk

S&P Global Inc. downgraded the Bloomberg first Republic Bank on Sunday after the ratings firm cut the lender to junk.

None of Credit Suisse's $17 billion of risky bonds is now worthless.

S&P lowered First Republic's long-term issuer credit rating to B from BB, confirming an earlier Bloomberg report.

First Republic Bank is well positioned to manage short-term deposit activity after Thursday s uninsured deposit of $30 billion by the 11 largest banks in the country, together with cash on hand, the company said in an emailed statement. This support shows confidence in First Republic and its ability to continue to provide unwavering exceptional service to its clients and communities. S&P reduced its rating to BB from A to junk on Wednesday after S&P downgraded First Republic to junk. Moody s cut the bank below investment grade on Friday.

S&P said First Republic's rating remains on CreditWatch negative, indicating that we could lower the rating further if the bank doesn't show signs of progress in stabilizing deposits and recovering the franchise value, which in our view, has likely eroded. As a long-term solution to the bank's funding issues, we do not view this deposit infusion, which has an initial maturity of 120 days, according to S&P analysts. Attracting meaningful deposits will be difficult and will limit the bank's business position.