Longstanding and stable market position in Puerto Rico Strong capital ratios Persistently high level of nonperforming assets (NPAs) High geographic concentration in the weak Puerto Rico market Sizable reliance on brokered deposits and repurchase agreements Substantial direct and indirect exposures to the Puerto Rican government and related instrumentalities The stable outlook on FirstBank Puerto Rico (FBP) reflects S&P Global Ratings' view that the bank's strong capitalization will likely be capable of sufficiently absorbing a potential increase in credit losses due to the slow recovery from Hurricane Maria, persistently weak power and communications infrastructure, and fiscal challenges of the commonwealth's government that may lead to austerity measures. We believe there is increased potential for incremental nonaccrual buildup and further losses given
