Fitch: R&G Financial Corp's Ratings Remain on Rating Watch Negative.

CHICAGO -- The ratings for R&G Financial Corporation (RGF) and its two subsidiary banks remain on Rating Watch Negative by Fitch. A complete list of ratings follows this release.

RGF announced today that it and its principal Puerto Rico banking subsidiary, R-G Premier Bank of Puerto Rico, have entered into consent orders with bank regulators. Among some of the terms, the consent order requires that the company submit a capital and liquidity contingency plan and engage a third party to review its mortgage loans. In addition, the company may not pay a dividend or extend credit to, or enter into certain asset purchase and sale transactions with its subsidiaries, without the prior consent of the regulators. These recent regulatory agreements come on the heels of similar regulatory restrictions for RGF's Florida-based bank, R-G Crown Bank, which were formalized via an agreement put in place by the Office of Thrift Supervision (OTS).

Fitch's rating actions for RGF in 2005 incorporated the fact that Fitch believed RGF was operating under closer regulatory scrutiny. Fitch views the emergence of the formal regulatory agreements as documenting and detailing the regulatory restrictions that RGF has been operating under since the emergence of its accounting and related problems in early 2005. RGF is in the process of correcting many of the internal control and accounting issues highlighted by the regulators. Although dividend payments and sales transactions must be approved by the regulators, no absolute restrictions have been placed on RGF. RGF is expected to continue to remain well capitalized. Fitch believes the regulators' oversight will expedite RGF's restatement process and quicken its return to a normal operating environment.

R&G Financial Corporation

--Long-term Issuer Default Rating (IDR) 'BBB-';

--Preferred stock 'BB';

--Individual 'C';

--Support '5'.

R&G Mortgage

--L-T IDR 'BBB-'.

R-G Premier Bank

--L-T IDR 'BBB-';

--Short-term 'F3';

--Individual 'C';

--Support '5';

--L-T deposit obligations 'BBB';

--S-T deposit obligations 'F2'.

R-G Crown Bank

--L-T IDR 'BBB-';

--Short-term 'F3';

--Individual 'C';

--Support '5';

--L-T deposit obligations 'BBB'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.