First Republic's strategic options 'very challenging' - Fitch

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First Republic's strategic options 'very challenging' - Fitch
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First Republic Bank's strategic options are 'very challenging' because any potential sale is unlikely without the lender taking big writedowns on its mortgage loan book and securities portfolio, analysts at Fitch Ratings said on Tuesday.

A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File Photostrategic options are "very challenging" because any potential sale is unlikely without the lender taking big writedowns on its mortgage loan book and securities portfolio, analysts at Fitch Ratings said on Tuesday.

"The options are very challenging and probably very costly, especially for shareholders. Who's going to bear the cost?" Wolfe said. Fitch rates First Republic as 'B' on its credit scale, deeming its bonds as highly speculative, with a material default risk and limited margin of safety. Fitch has a "negative watch" on the bank.

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