S&P downgrades Popular

Standard & Poor's said it lowered the counterparty credit rating on Popular Inc. to BBB-/A-3 from BBB+/A-2.

The outlook was revised to stable from negative.

"The rating action results from several factors, including reported net operating losses, a continued deterioration in credit quality and an expected decline in capital ratios," S&P analyst Robert Hansen said in a statement.

"Most importantly, we are concerned by the reported increase in nonperforming assets and the potential for further deterioration, notably in the construction, mortgage and commercial loan portfolios, as we see continued pressure on home prices and reduced sale activity," Hansen said.

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