On Dec. 13, 2005, Standard & Poor's Ratings Services lowered its long-term ratings on FirstBank Puerto Rico, the bank subsidiary of First BanCorp. (FirstBank; NYSE:FBP), including FirstBank's long-term counterparty rating, which was lowered to 'BB+' from 'BBB-'. At the same time, FirstBank remains on CreditWatch Negative, where it was placed on Oct. 3, 2005. The ratings actions follow FirstBank's press release, divulging issues that will further pressure capital and funding such that FirstBank will fall slightly below the regulatory "well-capitalized" definition. The continuation of the CreditWatch listing reflects the heightened concern regarding FirstBank Puerto Rico's unrestricted access to brokered CDs, uncertainty regarding the ultimate findings in the internal and SEC accounting review, and the associated financial impact to its GAAP
