Credit rating agency Standard & Poor's said Tuesday evening it affirmed its credit rating Santander BanCorp, but lowered its outlook to "Negative" from "Stable."
S&P affirmed the Puerto Rican bank's investment-grade "A" rating, saying Santander's portfolio is well balanced and it has adequate capital ratios.
The negative outlook is due to continued deterioration in the lending markets. S&P said rising defaults among loans will lead to more non-performing assets. If non-performing assets rise above S&P expectations, the rating could be lowered.
A negative rating outlook means there is a one in three chance the bank's rating could be lowered in the next two years.
Madrid, Spain-based Banco Santander S.A. is the majority owner of Santander BanCorp.
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