...Heavy reliance on wholesale funding, including brokered deposits and repurchase agreements Outlook: Stable The stable outlook on FirstBank Puerto Rico (FBP) reflects S&P Global Ratings' view that the bank's improved capitalization should give it an ability to absorb the high losses that could result from its poor asset quality. Our rating already reflects FBP's substantial loan exposures to Puerto Rican government-related entities and the commonwealth's fiscal challenges. We expect the ratings to continue to face stress from weakening credit trends in the Puerto Rico economy, and the uncertainty around the magnitude of potential loan losses that could arise from the Puerto Rican government-related exposures- which we think will become clearer over the next year or two. S&P Global Ratings would lower the rating on FBP if loan performance weakens substantially from current levels, or if we expect the company's forecast S&P Global risk-adjusted capital (RAC) ratio to fall below 10%. We could...
