Citing the company’s decision to delay releasing its latest financial results, Home Capital Group Inc. has been downgraded by

DBRS Ltd. on Tuesday downgraded the ratings for Toronto-based Home Capital Group Inc. (HCG) citing the company’s decision to delay releasing its latest financial results.

The Toronto-based credit rating agency downgraded HGG’s senior debt rating to CCC from BB. The rating action reflects its “concern over recent events,” DBRS said in a statement, including the firm’s decision to postpone the release of its first quarter earnings from May 2 to May 11.

“DBRS considers this delay in announcing results as a negative, especially given that the initial Ontario Securities Commission’s hearing regarding the statement of allegations made against three former members of HCG’s senior management is scheduled for May 4,” the credit rating agency says. “These events are likely to continue to draw unfavourable attention to the group.”

Read: OSC accuses Home Capital, execs of misleading disclosure

Additionally, DBRS says that the firm “has not demonstrated an ability to stabilize its funding and liquidity, as accelerated withdrawals of on-demand High Interest Savings Account (HISA) deposits continue.”

the recent decline in the company’s share price “would make it very difficult for HCG to raise additional capital or issue debt,” DBRS adds.

The firm’s ratings could be negatively impacted, DBRS says, “if HCG is unable to stem deposit outflows and obtain funding at a reasonable cost. In addition, any significant negative consequences of the OSC hearing could also impact the ratings.”

Conversely, the ratings could revert to stable “if HCG is able to stabilize its funding and liquidity profiles, while demonstrating a clear path to sustainable profitability,” DBRS days.