USA, Sep. 30, 2009 (Info-Prod Research) -- As part of the ongoing review for possibledowngrade that Moody's Investors Service initiated on July 31, 2009, therating agency announced that it would be conducting an assessment ofFirst Bancorp's governance and controls. This follows First Bancorp's (NYSE:FBP PRB) (NYSE:FBP PRC) (NYSE:FBP PRD) (NYSE:FBP PRA) (NYSE:FBP PRE) (NYSE:FBP) (NASDAQ:FBNC) 8Kfiling on September 28, 2009, in which the resignation of their Chairman,CEO and President, Luis Beauchamp, was announced following an internalreview by the Audit Committee into certain personal transactions that hefailed to report to the Corporation in accordance with its policies andprocedures. First Bancorp is the unrated bank holding company ofFirstBank Puerto Rico (bank financial strength D+, long-term deposits Ba1on review for possible downgrade), its primary operating subsidiary. In addition to governance and controls, as previously mentioned, thereview will focus on the possible further deterioration in FirstBank'sloan portfolio. Continued deterioration in the bank's Puerto Ricoportfolio would further challenge financial flexibility which is alreadyseverely pressured by FirstBank's Florida commercial real estate exposurewhere losses are at the high end of Moody's expectations. The review wasinitiated following First BanCorp's second quarter earnings release whereit reported a net loss of $78.7 million, driven by a provision for loanlosses of $235 million, and announced the suspension of common andpreferred dividends. The heightened provision was primarily due to thecontinued market downturn in South Florida and Puerto Rico.