First Republic’s shares drop more than 17% after downgraded credit rating

The US bank may need to raise more funds despite a $30bn rescue last week

Shares in First Republic Bank dropped more than 17% on Monday, after reports the San Francisco-based bank may need to raise more funds despite a $30bn rescue last week.

The credit rating of the regional bank was downgraded deeper into junk status by S&P Global. The agency said that the bank, which caters to wealthy clients, likely faced “high liquidity stress with substantial outflows”.