First Republic Bank stock seen extending losses

First Republic Bank FRC shares were seen extending their losses on Monday.

What Happened: The stock of the troubled regional bank plunged 21.58% to $18.06 in pre-market trading, according to Benzinga Pro data. The stock was down by 32.80% on Friday despite private banks, led by JPMorgan Chase Co. JPM, extending a lifeline by providing a $30 billion rescue package.

The bank, as part of its efforts to preserve liquidity, has announced the suspension of its dividend.

Monday s weakness could be due to Standard Poor's a back-to-back downgrade of the bank's credit rating. On Sunday, a cut in the bank's credit rating from A to B S&P lowered it further to BB into junk territory, on the heels of a cut in the bank's credit rating from A to B S&P.

The rating agency said deposit infusion should help alleviate near-term liquidity pressures, but it is unlikely to solve the substantial business, funding, and profitability challenges that the bank is likely to face.