Since our last rating action on April 27, further developments at Home Capital Group Inc. (HCG) have continued to weaken the firm's franchise position and financial performance, including heightened liquidity risk stemming from accelerated deposit outflows of high-interest savings accounts, as well as elevated operational challenges exacerbated by additional board turnover. We are therefore lowering our long-term issuer credit ratings on HCG and Home Trust Co. to 'B-' from 'B+' and 'BB', respectively. At the same time, we are affirming our 'B' short-term issuer credit ratings on both companies. We are also lowering our senior unsecured debt rating on Home Trust to 'B-' from 'BB'. We are revising the CreditWatch implications to developing from negative. The developing CreditWatch reflects the
