Fitch Rates First Puerto Rico Tax-Exempt Fund's CEOs 'A+/F1'.

NEW YORK -- Fitch rates the First Puerto Rico Tax-Exempt Fund, Inc. short-term collateralized exempt obligations (CEOs) and medium-term collateralized exempt obligations 'F1' and 'A+', respectively. The ratings are based on asset coverage and collateral maintenance amount tests, as well as the track record of the asset manager.

The fund is an open-end management investment company that invests primarily in fixed-income securities, including Puerto Rico and U.S. Government securities, mortgage-backed and asset-backed securities and municipal obligations. The fund is registered under the Puerto Rico Investment Companies Act which allows it to borrow funds through the issuance of debt and preferred stock. Under the Puerto Rico Investment Companies Act, the fund may borrow up to 50% of its total assets. The fund is required to invest at least 67% of total assets in Puerto Rican obligations. Additionally, the fund is required to invest at least 95% of total assets in investment-grade securities.

Both the collateralized exempt obligations issued by the First Puerto Rico Tax-Exempt Fund, and the shares of the Fund, may only be offered to residents of Puerto Rico.

The asset manager, Santander Asset Management Corporation, a wholly owned subsidiary of Santander Securities Corporation, offers investment advisory and management services to individual and institutional clients in Puerto Rico.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.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. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.