The rating on Geneva, however, is limited by the company's small market position; the potential for deterioration in asset quality given the company's loan portfolio is unseasoned and is largely focused on a higher-risk market segment; and a relatively small absolute-sized capital base.
Geneva's earnings profile is progressively improving and management's recognition of the need for alternative funding avenues support the financial profile and final rating.
S&P say factors that will support a higher long-term rating include evidence of further improvement in the company's operating performance and diversity of earnings, and the maintenance of sound asset quality.
Further support would arrive from an improvement in capital resources, reflecting Geneva's involvement in higher-risk lines of business.
"Conversely, the rating could be pressured if there was any deterioration in Geneva's asset quality, given its proximity to a market segment that is experiencing difficulties.
Maintenance of sound liquidity management is equally important." S&P says.
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