...- Despite difficult operating conditions over several years, Puerto Rican banks have remained profitable, improved asset quality, and experienced large deposit inflows. Capital ratios have held up better than expected, particularly for FirstBank Puerto Rico and Popular Inc., and we expect them to remain elevated given we see continued profitability, manageable loan losses, and consistent shareholder returns. - We believe ongoing fiscal stimulus related to the pandemic, coupled with continued disbursements of private insurance payments and federal aid following Hurricane Maria, will provide tailwinds to the local economy, though it will likely remain weaker than the overall U.S. economy. - We raised our rating on FirstBank Puerto Rico, raised our ratings on Popular Inc., and affirmed our rating on OFG Bancorp. - The stable outlooks incorporate our view that the Puerto Rican banks will perform reasonably well over the outlook horizon, even though we expect asset quality metrics to remain...
