Strong S&P Global Ratings risk-adjusted capital ratio Good asset quality track record Concentrated exposure to the riskier nonprime segment of the Canadian mortgage market High dependence on the third-party brokered channel for mortgage and deposit origination Weak profitability compared with historical levels, although improving, and limited revenue and geographical diversification The stable outlook reflects our expectation that Home Capital Group (HCG) will continue to demonstrate sustained growth and improving profitability, while maintaining good asset quality metrics and a very strong risk-adjusted capital (RAC) ratio of more than 15%, within our one-year outlook horizon. The likelihood of a further upgrade is small during our outlook horizon. Were it to occur, it would most likely result from a significantly higher share of
