FirstBank Puerto Rico is experiencing rapid credit deterioration, a high level of net losses, and reduced capital ratios, trends we expect should continue for the next several quarters. We lowered the long-term counterparty credit rating on FirstBank by several notches, reflecting the ongoing challenges the firm faces. We expect continued credit quality weakness across all portfolios and particularly in construction lending in its key markets and we expect net operating losses to persist in the near term. On Sept. 9, 2009, Standard&Poor's Ratings Services lowered its counterparty credit rating on FirstBank Puerto Rico to 'B' from 'BB+'. The outlook is negative. The downgrade on FirstBank reflects our heightened concern over ongoing rapid deterioration in credit quality, weakening capital
