The rating on FirstBank Puerto Rico (FirstBank) reflects its strong market position in Puerto Rico and improved adjusted capital ratios. This in part is offset by weakening credit quality metrics reflecting FirstBank's challenged operating markets including climbing provisions for loan losses affecting profitability growth. We see credit quality as the main risk facing the company in the near future although we do not expect significant credit quality deterioration. The rating also considers FirstBank's heavy reliance on wholesale funding sources and its geographically concentrated business in Puerto Rico. With the financial reporting restatements and legal issues behind FirstBank, the company is positioned to refocus on its corporate strategy and build on its strong presence n Puerto Rico. Within its home market,
