TORONTO, Dec. 15 /CNW/ - Standard & Poor's ("S&P"), a leading credit rating agency, has affirmed its BBB/A-2 long-term and short-term counterparty ratings to Home Trust Company and BBB-/A-3 to Home Capital Group Inc. (TSX:HCG). The outlook on both entities remains stable. The ratings and outlook have remained the same since S&P's initial rating assignments in November 2005.
The ratings reflect Home's continued positive operating earnings and strong capital and liquidity positions while maintaining no direct exposure to U.S. subprime or Canadian non-bank asset backed commercial paper. The Company has continued to realize favourable efficiency ratios through prudent management of expenditures while maintaining asset quality with a focus on low-risk residential first mortgages, strong mortgage originations and effective use of deposit and mortgage insurance programs.
"These investment grade rating affirmations from Standard & Poor's in this challenging economic climate acknowledge our track record of success as one of Canada's leading trust companies, delivering outstanding financial returns and superior business growth while maintaining a tradition of prudent risk management," said Gerald M. Soloway, CEO of Home Capital Group Inc. and Home Trust Company.
Home Trust Company is the only trust company in Canada, which is not a subsidiary of a major bank, which has maintained an investment grade rating from S&P.
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.