The ratings on Home Capital reflect its anchor rating of 'a-' and company-specific factors, including its "weak" business position, its "strong" capital and earnings, its "moderate" risk position, and "average" funding and "adequate" liquidity (as our criteria describe these terms). The stand-alone credit profile on Home Trust Company is 'bbb'. The company's strong capital position and consistent earnings performance offset the risks inherent in its concentrated exposure to the Canadian mortgage market, including its established niche position serving a higher-yielding segment of the market. The stable outlook reflects Standard&Poor's Ratings Services' view that Home Capital Group is well positioned to manage the credit risks and competitive pressures acting on its mortgage-lending franchise, in a variety of of future
