FirstBank Puerto Rico continues to experience increased credit deterioration, significant pressure on capital ratios, and net operating losses. We placed our rating on FirstBank Puerto Rico on CreditWatch Negative to reflect the bank's persistent operating losses from elevated credit costs and very weak capitalization levels. We could lower the rating by one or two notches should the bank's initiatives to boost capital not materialize in the near term. On April 27, 2010, Standard&Poor's Ratings Services placed its 'B' long-term counterparty rating on FirstBank Puerto Rico on CreditWatch with negative implications. The CreditWatch placement reflects our expectations for FirstBank's continued high credit losses and the need to further build reserves, which could contribute to additional net losses and pressures
