NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a deposit rating of AA and short-term deposit rating of K1+ to The Toronto-Dominion Bank (NYSE: TD or “TD Group”), an international financial services group. KBRA also assigns deposit and senior unsecured debt ratings of AA- and short-term deposit and debt ratings of K1+ to TD Bank, N.A., the lead U.S. subsidiary. The Outlook for all long-term ratings is Stable.
The ratings are based on TD’s diversified business model, with a leading banking and wealth/asset management franchise in Canada and solid market position in the U.S., combined with strong through-the-cycle financial performance and importance to the Canadian financial system. TD benefits from a strong risk-adjusted capital position combined with earnings stability and diversification as well as healthy asset quality. The group has a sound funding and liquidity profile, although there is a notable amount of wholesale funding in conjunction with TD’s corporate banking and capital markets businesses. A continued economic slowdown in Canada combined with housing price pressure may cause impaired loans and provisions for credit losses to gradually normalize from extremely low levels. That said, KBRA views TD as having very solid financial strength owing to conservative risk management practices, high-quality regulatory supervision, and the generally strong and stable macro profile of the Canadian economy. The ratings of TD Bank, N.A. reflect its sound financial metrics combined with KBRA’s belief that this strategically important subsidiary would be supported by its parent bank in the unlikely event of need. KBRA’s Stable Outlook assumes the continuance of TD’s steady operating performance and financial strength over the medium term.
A detailed report will be forthcoming.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016. The ratings were not solicited by The Toronto-Dominion Bank.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.