We have observed trends of rising consumer leverage and elevated residential real estate prices in Canada, in conjunction with incremental deterioration of the domestic and global economic outlook. In our view, this poses a risk for Canadian banks given the importance of each bank's consumer credit loan portfolio. We are revising our outlook on Home Capital Group to negative from stable and affirming our 'BBB' long-term and 'A-2' short-term issuer credit ratings on Home Capital, and our 'BBB+' long-term and 'A-2' short-term issuer credit ratings on Home Trust Company. The negative outlook reflects the possibility that we might lower the ratings on the company if the growing economic imbalances were to lead us to a more negative view of the
