First Republic Bank stock tumbled again Monday morning after credit rating agency S&P tagged the bank with a significant downgrade over the weekend.
The firm dropped the regional bank from a B+ to a BB- rating (a three-step downgrade) and said that additional downgrades were not out of the question.
FRB shares traded roughly 16% lower at $14.50 Monday morning in New York after already losing about 33% on Friday.
S&P noted First Republic’s likely “high liquidity stress” and “substantial outflows” last week, suggesting long-term issues were unlikely to be resolved through a US$30 billion deposit infusion from larger banks.
A group of 11 tier-1 banks, including JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) stepped in to support FRB on Thursday.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel