first republic credit rating has been cut by seven notches in four days by sp global ratings to b from a shares of first republic bank tumbled toward a record low monday after the troubled bank had its credit rating slashed deeper into junk territory over at sp global ratings the stock frc dropped 200 in premarket trading putting it on track to open below the oct 3 2011 record low close of 2248 sp on sunday cut first republic banks longterm issuer rating by three notches to b from bb saying the 30 billion rescue package the bank received last week doesnt solve the banks liquidity problems the 30 billion in deposits that first republic reported it will receive from 11 large us banks should ease nearterm liquidity pressures but it may not solve the substantial business liquidity funding and profitability challenges that we believe the bank is now likely facing sp said the stock rose 100 last thursday after the 30 billion in deposits received was announced but then plunged 328 on friday the banks rating remains on creditwatch negative with sp warning the rating could be downgraded further if the bank is unable to demonstrate some progress in stabilizing deposits based on the companys public disclosure on march 16 that secured borrowings from the federal reserve have ranged from 20 billion to 109 billion and borrowings from the federal home loan bank increased by 10 billion over the last week we think that the outstanding balance of secured borrowings has likely increased significantly to fund sharp deposit outflows that had occurred sp said the downgrade on sunday comes just four days after sp cut the rating by four notches to bb the first speculative grade or junk rating from a a b rating at sp means the entity is more vulnerable to adverse business financial and economic conditions but currently has the capacity to meet financial commitments the stock was on track to open below the 20 level below the oct 3 2011 record low close of 2248 moodys investors service cut its credit rating on first republic bank by four notches to junk on friday to b2 from baa1 and said the rating remained under review the stock has plummeted 800 through friday since the troubles of svb financial groups sivb silicon valley bank were first made public after the march 8 close which led to failures by silicon valley bank and signature banksbny and a bankruptcy filing by svb over the same time the spdr sp regional bank exchangetraded fund kre has dropped 253 and the sp 500 index has slipped 19 this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal