We believe that the Canadian banking sector is encountering incremental pressure from headwinds facing the Canadian economy, which is heightening economic risk in the banking system. We also believe industry risk for the Canadian banking sector is increasing. We expect that intensifying competition for loans and deposits will lead to pressure on profitability growth, especially in banks' retail businesses. We are lowering our long-term issuer credit rating on Home Capital Group to 'BBB-' from 'BBB' and on its subsidiary Home Trust Co. to 'BBB' from 'BBB+', and assigning a stable outlook, following our revision of the stand-alone credit profile on the company to 'bbb' from 'bbb+'. In conjunction with these actions, we are also lowering our issue rating on Home
