Fitch: Popular's Rating Outlook Negative

Fitch Ratings has revised its rating outlook on the Puerto Rican financial institution Popular Inc. from stable to negative in the wake of Popular's announcement that it will acquire E-Loan Inc.The rating outlook applies to the long-term A ratings of Popular and its subsidiaries. Fitch also affirmed all its ratings on the companies. Noting that Popular "intends to capitalize on E-Loan's well-developed Internet platform for mortgage lending to complement its nonprime mortgage product line," the rating agency said the negative rating outlook reflects its concern that Popular's core capital will decline as a result of the acquisition "to the low end of its rating peer group, a concern given the heightened risk profile of the organization." Fitch can be found online at http://www.fitchratings.com.