DBRS lowers Home Capital

DBRS said it downgraded Home Capital Group’s senior debt rating to BBB (low) from BBB and its short-term instruments rating to R-2 (low) from R-2 (middle).

The agency said it downgraded the issuer rating as well as the deposit and senior debt ratings of Home Trust Co., Home Capital’s primary operating subsidiary, to BBB from BBB (high).

DBRS also said it downgraded the trust company’s short-term instruments rating to R-2 (middle) from R-2 (high).

The agency also maintained the negative trend on all ratings.

The downgrades reflect an increasing concern over internal pressures at Home Capital caused by recent changes in the executive management team, the agency said.

DBRS said it expects Home Capital’s process of improving operational efficiency, strengthening internal controls and enhancing operating performance to take time.

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