First Republic Stock Fell on a Credit Downgrade. Here’s What To Know

First Republic suffered a downgrade on Wednesday from two credit agencies, sending its stock down more than 20%.

Cordell Eminent Scholar Jay Ritter explained that “rating agencies normally follow rather than lead in terms of the stock price.”

“It’s more that the rating agencies are paying attention to the market and saying, ‘We’d better pay attention, and there’s a reason the market is concerned with many banks,’” he said.  

Read more of Ritter’s insights in this story from the San Francisco Standard.