...- Puerto Rican banks have encountered difficult operating conditions over the past several years, including an earthquake, Hurricane Maria, which led to electric grid damage and loan moratoriums, and government-related defaults, followed by the COVID-19 pandemic. - Nonetheless, rated Puerto Rican banks have remained profitable, with large deposit inflows improving their funding models, and we believe ongoing fiscal stimulus related to the pandemic, coupled with the continued disbursement of private insurance payments and federal aid following Hurricane Maria, will provide a meaningful boost to the Puerto Rican economy and bank balance sheets. - We therefore raised our rating on FirstBank Puerto Rico and assigned a positive outlook, raised our rating on OFG Bancorp and assigned a stable outlook, and revised the outlook on Popular Inc. to positive from stable and affirmed the ratings. - These rating actions reflect long-term improvements in performance, such as improved funding, reduced problem...
