Good asset quality track record Very strong S&P Global Ratings risk-adjusted capital (RAC) ratio, although under pressure from large share repurchases Concentrated exposure to the riskier near prime segment of the Canadian mortgage market High dependence on the third-party brokered channel for mortgage and deposit origination Weaker profitability compared with historical levels, although improving, and limited revenue and geographical diversification The stable outlook reflects our expectation that Home Capital Group Inc. (HCG) will continue to demonstrate sustained growth and improving profitability, while maintaining good asset quality metrics and a very strong forecast S&P Global Ratings RAC ratio of more than 15% (our threshold), within our one-year outlook horizon. We could consider raising the issuer credit rating (ICR) if we were
