Longstanding and stable market position in Puerto Rico Strong risk-adjusted capital ratios Consistent core profitability in recent years A very high, though declining, level of nonperforming assets (NPAs) High geographic concentration in the weak Puerto Rico market The positive outlook on FirstBank Puerto Rico (FBP) reflects the possibility that we could raise our ratings on the bank in the next 12 months if we were to become confident that economic conditions in Puerto Rico have stabilized and project that the bank's risk-adjusted capital (RAC) ratio will remain sustainably above 15%, even after factoring in potential credit losses and expected capital deployment. We believe despite potential for some incremental nonaccrual buildup, that future credit losses will likely be manageable given existing
