S&P lowers Home Capital

S&P said it lowered the long-term issuer credit rating on Home Capital Group Inc. to B+ from BBB-, as well as its short-term issuer credit rating to B from A-3.

The agency also said it lowered the long-term and short-term issuer credit ratings on Home Trust Co. to BB and B from BBB and A-2, respectively.

S&P also said it lowered the senior unsecured debt ratings on Home Trust to BB from BBB.

The ratings also remain on CreditWatch, where they were placed with negative implications in March, the agency said.

The downgrades follow a series of recent developments at Home Capital that are undermining the company's franchise value, including funding challenges stemming from diminished depositor confidence and heightened governance-related risks, S&P said.

The ratings also reflect the company's weakened liquidity position and its substantial reliance on secured funding, the agency said.

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