S&P Issues AA- Rating for TD Bank and Outlook Downgraded from Positive to Stable

October 07 00:00 2011

NEW YORK,October7 (RainbowNewsLine.com): S&P Rating Services has revised its outlook for TD Bank from POSITVE to STABLE and assigned ‘AA-‘ rating.

S&P Affirmed its rating on TD Bank and other concerned entities as ‘AA-‘long term and ‘A-1+’ on short term counterparty credit ratings. They also revised its outlook rating for TD Bank from positive to stable for economic uncertainty factor. Such revision was based mainly due to poor expectations of future performance that will provide opportunities for further advancement.

S&P Credit analyst, Thomas Connell said, “The stable outlook incorporates our expectations that TD Bank will exhibit stable ongoing operating performance, despite a possibly deteriorating economic environment.” Previous positive outlook for TD Bank was done by S&P in June 2010 when they witnessed strong domestic performance, successfully uniting their latest US acquisitions and significant improvement in their US credit portfolio. Analyst believes that current market conditions and poor current economic scenarios have created challenges for TB Bank. The weak Canadian economic recovery will add to the obstacles of TD Bank’s outlook, as it will burden operating conditions more than anticipated.

Analysts at S&P affirm that TD Bank is well positioned at current rating and there are potential factors that continue to support its credit profile such as a leading domestic retail franchise rooted in various business categories, conservative risk management orientation of TD Bank and strategy, and sound performing asset quality that have shown promise in various economic cycles. Therefore, overall outlook is stable and future advancements depend on the performance of the Bank’s oriented franchises, the analysts say. The analysts might downgrade the rating if they find the bank’s profitability or capitalization to reduce due to economic decay.

  Categories: