Fitch upgrades Popular

Fitch Ratings said it upgraded Popular Inc.'s long-term issuer default rating to BB from BB-.

The outlook remains stable.

The upgrades reflect the resilience of Banco Popular de Puerto Rico's financial profile, which was better than expectations despite a challenging operating environment in recent years, Fitch said.

The upgrade is further supported by reduced uncertainty around the bank's operating environment over the outlook horizon, the agency said.

The ratings were previously constrained by potential weakening of its financial profile due to Puerto Rico's challenged fiscal position, Fitch said, and the destruction caused by hurricanes Irma and Maria. But, economic activity in Puerto Rico has been better than expected following the hurricanes, Fitch noted.

The ratings reflect a change in the view of the bank's operating environment in Puerto Rico, the agency said, as well as an assessment of the relative importance of the bank's U.S. mainland operations in assessing its operating environment.

Fitch also said it expects that federal aid from the U.S. government and rebuilding efforts will have a positive short- to medium-term impact on the island's economy.

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