TORONTO, Feb. 11 /CNW/ - Fitch Ratings, a leading global rating agency,
has maintained its Positive Rating Outlook (BBB-/F3) for Home Capital Group
Inc. (TSX:HCG) and its subsidiary Home Trust Company.
Fitch stated that its Positive Outlook reflects Home Capital's
consistently robust earnings, which have been driven by a solid net interest
margin, strong income-producing asset growth, steady revenue increases across
all business segments, good asset quality metrics, and stringent cost
controls. Furthermore, Fitch views the company's capital and reserve levels as
sound, which also mitigates risk.
Despite the ongoing challenges in global credit markets, Fitch noted that
the Canadian market has fared better than most. Home Capital has continued to
retain sufficient liquidity and possesses no direct exposure to any non-bank
sponsored asset backed commercial paper or U.S. sub-prime lending. With no
debt at the holding company or any term debt at Home Trust, the company has
also increased its use of CMHC mortgage securitizations for funding and
capital management. Fitch further noted that if the Company is able to
maintain solid financial performance despite the challenging macroeconomic
environment that is envisioned for 2009, an upgrade of Home's ratings would be
"This positive outlook reflects our continuing ability, despite the
challenges in the credit markets, to generate strong financial results while
reducing the Company's risk profile," stated Gerald M. Soloway, CEO of Home
Capital Group Inc. and Home Trust Company.
Home Capital Group Inc. is a public company, traded on the Toronto Stock
Exchange (HCG), operating through its principal subsidiary, Home Trust
Company. Home Trust is a federally regulated trust company offering deposit,
mortgage lending, retail credit and payment card services. Licensed to conduct
business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia and Quebec.
For further information:
For further information: Gerald M. Soloway, CEO, or Nick Kyprianou,
President, (416) 360-4663, www.homecapital.com