...The negative outlook on FirstBank Puerto Rico largely reflects the weak local economy, high exposures to the commonwealth and its related entities, and persistently high NPAs, despite large bulk loan sales in recent years. In Standard & Poor's Ratings Services' view, these factors present risks to our forecasts and could hurt profitability and credit performance. These negatives, we believe, continue to weigh on the improvements in the bank's capital levels and its adequate liquidity. We could lower the rating if NPAs increase and net charge-offs (NCOs) remain elevated, or if we believe the bank will report significant losses. We could revise the outlook to stable if the Puerto Rico economy stabilizes and asset quality were to improve for a sustained period, or if the bank resolves its pending regulatory issues. However, this is unlikely because of the bank's weak credit metrics and its heavy concentration in Puerto Rico. We have a negative outlook on the commonwealth....
