June 9, 2014
/PRNewswire/ -- Doral Financial Corporation (NYSE: DRL) is a bank holding company located in the Commonwealth of
with growing operations in
the United States
, specifically in the
New York City
(NYC) metropolitan area as well as in parts of
. The company is engaged in retail banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries, which include
, Doral Insurance Agency, Doral Recovery and Doral Properties.
Recently, Fitch Ratings came out with an economic report regarding
weak fundamentals and ongoing budgetary challenges for the government there, which will likely "weigh on the operating performance and credit profiles of local banks." Overall, unemployment remains high at around 14%, while the local housing market has been restrained by these poor labor market conditions. The government of
continues to see high debt levels (approximately
) and increasing pension funding requirements. As a result, GDP growth has been, and will continue to be slow -- hurt also by the Commonwealth's credit rating downgrade to junk status by all three of the major credit rating agencies in
. Although the downgrade was not unexpected, it did force some selling in many municipal bond mutual funds that are only allowed to hold investment grade debt in their portfolios.
Despite recent actions by the government to reduce deficits and reform the pension system,
will likely face high interest rates and continued economic weakness going forward. As such, banks in the Commonwealth, including DRL, are expected to continue to face a tough economic environment for the time being.
A full in-depth analyst report on DRL that includes risk factors, industry review, financial position, potential revenues, review of current business model, competition breakdown, analyst summary, and recommendation can be viewed by using the following link at no cost: