Consistently profitable in recent years after adjusting for various nonrecurring items Adequate capital ratios, though likely to decline near term because of the announced acquisition of Wells Fargo&Co.'s auto finance business in Puerto Rico Substantially improved funding and liquidity ratios Weak competitive market position in the U.S., though very strong in Puerto Rico Weak loan performance with a persistently high level of nonperforming loans High geographic concentration in Puerto Rico, which has been plagued by infrastructure issues, fiscal austerity, and outmigration The outlook on Popular Inc. is negative, reflecting the potential that the bank's loan performance could deteriorate more than S&P Global Ratings previously anticipated following Hurricane Maria. We also view negatively the expected decline in capital ratios
