Fitch downgrades Home Capital, Home Trust

Fitch Ratings said it downgraded the ratings of Home Capital Group Inc. and its subsidiary, Home Trust Co.

Along with the downgrades, the outlooks on the companies were revised to stable from negative.

Home Capital's long-term issuer default rating was downgraded to BBB- from BBB, senior debt to BBB- from BBB, viability rating to BBB- from BBB and short-term issuer default rating to F3 from F2.

Home Trust's long-term issuer default rating was downgraded to BBB- from BBB, senior debt to BBB- from BBB, viability rating to BBB- from BBB and short-term issuer default rating to F3 from F2.

The downgrades reflect the company's historic and projected rate of loan growth, both of which exceeded peer group medians and expectations, Fitch said.

The agency said it views the company's growth cautiously given the company's concentrated risk profile in the alternative single-family mortgage space and the moderate overvaluation in the Canadian housing market, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.