Track record of managing mortgage sector risk while building market position Strategic focus, sectoral expertise, and management continuity Consistent earnings performance Concentrated exposure to riskier segment of Canadian mortgage market High growth rate of mortgage portfolio, with emphasis on uninsured mortgage lending Dependence on third-party channels for mortgage and deposit origination The stable outlook reflects Standard&Poor's Ratings Services' view that Home Capital Group is well positioned to manage the credit risks and competitive pressures acting on its mortgage-lending franchise, in a variety of of future economic and housing market conditions. An upgrade would depend primarily on the company achieving substantial further diversification of its asset portfolio, while maintaining consistent performance in top-line growth and profitability. We could lower
