The ratings on FirstBank Puerto Rico (FirstBank) reflect Standard&Poor's Ratings Services' assessment of its good market position and brand recognition in Puerto Rico and limited geographical diversification. The ratings also reflect our heightened concern over ongoing rapid deterioration in credit quality, heavy reliance on wholesale funds, weakening capital position, and our expectation for continued net operating losses in future quarters. We have factored into our expectations higher losses and the need for reserve build, which will further contribute to FirstBank's current negative operating loss position. In particular, we view negatively the rapidity with which nonperforming assets (NPAs include past due and restructured loans) and net chargeoffs (NCOs) rose. This suggests the potential for further deterioration in the construction,
