Moody’s withdraws FirstBank’s ratings after bank ends service
Moody’s Investors Service has withdrawn the Baa2 long term deposit rating of FirstBank Puerto Rico, citing undisclosed “business reasons.”
Prior to the withdrawal, the rating outlook on FirstBank was stable.
However, in a statement sent to News is my Business, FirstBank Puerto Rico said it terminated its rating service agreement with Moody’s effective Dec. 1, 2022, while maintaining its current rating relationships with both Fitch Ratings and S&P Global Ratings.
“This decision was reached as part of our ongoing cost-efficiency initiatives taking into consideration our limited rating services’ needs for the foreseeable future,” the bank stated.
“As a result of our decision to terminate the services, Moody’s decided to withdraw the bank’s ratings effective Dec. 21, 2022. Moody’s explains their decision does not reflect any concerns about FirstBank’s creditworthiness or the quality of its management,” it added.
The affected ratings are:
- Adjusted Baseline Credit Assessment, Withdrawn, previously rated ba1;
- Baseline Credit Assessment, Withdrawn, previously rated ba1;
- ST Counterparty Risk Assessment, Withdrawn, previously rated P-3(cr);
- LT Counterparty Risk Assessment, Withdrawn, previously rated Baa3(cr);
- ST Counterparty Risk Rating (Foreign Currency), Withdrawn, previously rated NP;
- ST Counterparty Risk Rating (Local Currency), Withdrawn, previously rated NP;
- LT Counterparty Risk Rating (Foreign Currency), Withdrawn, previously rated Ba1;
- LT Counterparty Risk Rating (Local Currency), Withdrawn, previously rated Ba1;
- LT Issuer Rating, Withdrawn, previously rated Ba2, STA;
- LT Bank Deposit (Local Currency), Withdrawn, previously rated Baa2, STA; and,
- ST Bank Deposit (Local Currency), Withdrawn, previously rated P-2.
“Moody’s has decided to withdraw the ratings for its own business reasons,” it stated.
