Fitch Rates Home Trust Company's C$300MM Issue 'BBB'

  Fitch Rates Home Trust Company's C$300MM Issue 'BBB'

Business Wire

NEW YORK -- December 6, 2013

Fitch Ratings has assigned Home Trust Company's (HTC) C$300 million 3.40%
senior unsecured notes due Dec. 10, 2018 a rating of 'BBB'. HTC is a federally
regulated trust subsidiary of Home Capital Group (HCG). A full list of al
HCG's ratings is at the end of this rating action commentary.

KEY RATING DRIVERS

The ratings assigned to the notes are equalized with HTC's long-term Issuer
Default Rating (IDR) of 'BBB'.

RATING SENSITIVITIES

The rating of the notes is sensitive to any change in HTC's IDR, which is
equalized to that of the parent, HCG. HCG's IDR Outlook remains Negative
following Fitch's affirmation of the ratings on April 4, 2013. The Negative
Outlook stems from HCG's focus on the residential mortgage business, which
makes the company susceptible to potential pressure in a less benign Canadian
housing market. Please refer to the press release 'Fitch Affirms Home
Capital's IDRs at 'BBB/F2'; Outlook Remains Negative' dated April 4, 2013, for
additional information.

Home Capital Group, Inc.'s ratings are as follows:

Home Capital Group, Inc.

--Long-term IDR: 'BBB';

--Senior debt: 'BBB';

--Viability Rating: 'bbb';

--Short-term IDR: 'F2';

--Support: '5';

--Support Floor: 'NF'.

Home Trust Company

--Long-term IDR: 'BBB';

--Viability Rating: 'bbb';

--Senior debt assigned at 'BBB';

--Short-term IDR: 'F2';

--Support: '5';

--Support Floor: 'NF'.

The Rating Outlook remains Negative.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'2014 Outlook: Canadian Banks' (Nov. 25, 2013);

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).

Applicable Criteria and Related Research:

2014 Outlook: Canadian Banks (Stable Rating Outlook Balanced Against Negative
Sector Outlook)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723698

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=810897

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Primary Analyst
Ryan Doyle
Director
+1-212-908-9162
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Justin Fuller, CFA
Director
+1-312-368-2057
or
Committee Chairperson
Nathan Flanders
Managing Director
+1-212-908-0827
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com
 
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