Rapid deterioration in credit quality resulting in operating losses Weakening risk-adjusted capital ratios Heavier reliance on wholesale funding sources than U.S. peers Limited geographic diversification Good market position and brand recognition as Puerto Rico's second-largest bank The ratings on FirstBank Puerto Rico (FirstBank) reflect Standard&Poor's Ratings Services' assessment of its good market position and brand recognition in Puerto Rico and limited geographical diversification. The ratings also reflect our heightened concern over ongoing rapid deterioration in credit quality, heavy reliance on wholesale funds, weakening capital position, and our expectation for continued net operating losses in future quarters. We have factored into our expectations higher losses and the need for reserve build, which will further contribute to FirstBank's current negative
