TORONTO, Dec. 16 /CNW/ - Standard & Poor's ("S&P") a leading global rating agency, has upgraded its long-term counterparty ratings for Home Capital Group Inc. (TSX:HCG) to BBB from BBB- and its subsidiary Home Trust Company to BBB+ from BBB. The outlook remains Stable.
S&P stated that the upgrades are indicative of Home Capital's and Home Trust's solid franchise, sustainable operating performance and asset quality, and very strong capital position. The ratings also reflect the quality and positive trend in net earnings, overall risk profile and solid capital base.
"Home Trust is the only trust company in Canada, not a subsidiary of a major bank, to maintain an investment grade credit rating from Standard & Poor's," stated Gerald M. Soloway, CEO of Home Capital and Home Trust. "We are also very pleased to have had our ratings upgraded, a reflection of our continuing ability to generate robust growth and strong financial performance while at the same time enhancing our risk profile."
"Looking ahead, we remain confident that once again this year we will meet or exceed all of our stated operating and financial targets, and that this momentum will continue into 2011," Mr. Soloway concluded.
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, residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending, Visa and payment card services. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.
The statements in this press release referring to stated operating and financial targets and outlooks are forward-looking statements. Forward-looking statements are made in connection with business objectives and targets, Company strategies, operations, anticipated financial results and the outlook for the Company, its industry, and the Canadian economy. Readers are cautioned not to place undue reliance on these forward-looking statements. For the Company's full Caution Regarding Forward-Looking Statements, please refer to Home Capital Group Inc.'s third quarter 2010 report, which can be found on the Company's website at www.homecapital.com and on the Canadian Securities Administrators' website at www.sedar.com.
For further information: For further information:
Gerald M. Soloway, CEO, or
Martin Reid, President