Good market position and brand recognition in Puerto Rico Adequate capital following recent capital raise High geographic concentration in troubled markets Heavy reliance on wholesale funding Moderate core profitability We expect that asset quality will somewhat stabilize in the coming quarters. However, we do not see the bank returning to profitability in the near term. If the bank's nonperforming assets increase to more than 20% while the bank is unable to return to profitability, we could lower the rating. We could raise the rating if asset quality deterioration were to reverse for a sustained period and we expect profitability to remain stable, thereby increasing our forecasted risk-adjusted capital (RAC) ratio above 10%. Our bank criteria use our Banking Industry Country
