Toronto-Dominion Bank (The): Update following ratings affirmation - Moody's Global Credit Research

Toronto-Dominion Bank (The): Update following ratings affirmation

Toronto-Dominion Bank (The): Update following ratings affirmation - Moody's Global Credit Research
Toronto-Dominion Bank (The): Update following ratings affirmation
Published Nov 22, 2023
13 pages (7657 words) — Published Nov 22, 2023
Price US$ 250.00  |  Buy this Report Now

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Brief Excerpt:

...Toronto-Dominion Bank (The) (TD) has a baseline credit assessment (BCA) of a1, which was affirmed on 6 November 2023. TD's ratings reflect the bank's strong domestic retail franchise, which generates stable and recurring profits. TD typically has a first or second market share position in many personal and commercial (P&C) products, with the bank generating approximately 90% (5-year average) of its earnings from its retail businesses (including Canadian and US P&C, wealth management, and insurance, excluding its corporate segment), making TD the most retail-oriented bank of its Canadian peers. TD's ratings are further supported by strong asset quality, strong capitalization, and very good liquidity, which protects against unexpected losses and market shocks. The ratings also take into account TD's exposure to the highly leveraged Canadian consumer through credit card and auto finance debt. TD's US regional banking franchise, which is operated through TD Bank, N.A., has a predominantly US...

  
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Credit Opinion

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Toronto-Dominion Bank (The)
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Toronto-Dominion Bank (The): Anti-money-laundering provision, restructuring expense overshadow strong core earnings - Issuer Comment – 2024/05/24 – US$ 200.00 – ...Effective 1 November 2023, the regulatory minimum TLAC risk-based and leverage ratios are 25.0% and 7.25%, respectively, reflecting OSFI's DSB of 3.5% and 0.5% Tier 1 capital buffer requirement. For Q2 2023, the regulatory minimum TLAC risk-based and leverage ratios were 24.5% and 7.25%, respectively. Sources: Company Financials and Moody's Ratings...

Toronto-Dominion Bank (The): TD's initial provision and severity of allegations related to its BSA/AML program are credit negative - Issuer Comment – 2024/05/15 – US$ 200.00 – ...Data is for Q1 2024 for all banks. The leverage ratios of the US banks are the supplemental leverage ratio. The CET1 ratio for US banks is calculated under the advanced approach. Sources: Company financials and Moody's Ratings...

Toronto-Dominion Bank (The): Provisions and restructuring expenses cut earnings, capitalization remains strong despite decline - Issuer Comment – 2024/03/01 – US$ 200.00 – ...Effective 1 November 2023, the regulatory minimum TLAC risk-based and leverage ratios are 25.0% and 7.25%, respectively, reflecting OSFI's DSB of 3.5% and 0.5% Tier 1 capital buffer requirement. For prior periods, the regulatory minimum TLAC risk-based and leverage ratios were: Q4 2023 - 24.5% and 7.25%, respectively, and Q1 2023 - 24.0% and 6.75%, respectively. Source: Moody's Investors Service, Company Financials...

Toronto-Dominion Bank (The): Update to credit analysis - Credit Opinion – 2024/02/13 – US$ 250.00 – ...Toronto-Dominion Bank (The) (TD) has a baseline credit assessment (BCA) of a1, reflecting the bank's strong domestic retail franchise, which generates stable and recurring profits. TD typically has a first or second market share position in many personal and commercial (P&C) products, with the bank generating approximately 90% (5-year average) of its earnings from its retail businesses (including Canadian and US P&C, wealth management, and insurance, excluding its corporate segment), making TD the most retail-oriented bank of its Canadian peers. TD's ratings are further supported by strong asset quality, strong capitalization, and very good liquidity, which protects against unexpected losses and market shocks. The ratings also take into account TD's exposure to the highly leveraged Canadian consumer through credit card and auto finance debt. TD's US regional banking franchise, which is operated through TD Bank, N.A., has a predominantly US East Coast footprint that has scale, stable profitability,...

Toronto-Dominion Bank (The): Earnings decline on higher provisions, restructuring expenses and acquisition-related charges - Issuer Comment – 2023/12/01 – US$ 200.00 – ...Effective 1 February 2023, the regulatory minimum TLAC risk-based and leverage ratios are 24.5% and 7.25%, respectively, reflecting OSFI's increase in the DSB to 3.0%. For prior periods, the regulatory minimum TLAC risk-based and leverage ratios were 24.0% and 6.75%, respectively, including the DSB of 2.5%, which was in effect since 31 October 2021. Source: Moody's Investors Service, Company Financials...

Toronto-Dominion Bank (The): Update to credit analysis - Credit Opinion – 2023/09/15 – US$ 250.00 – ... is supported by its strong domestic retail franchise as well as its overall retail-oriented business mix, which generates stable and recurring profits. TD typically has a first or second market share position in many personal and commercial (P&C) products, with the bank generating approximately 90% (5-year average) of its earnings from its retail businesses (including Canadian P&C, wealth management, insurance, and US P&C and excluding its corporate segment), making TD the most retail-oriented bank of its Canadian peers. This disciplined, retail-oriented management culture has yielded exceptional risk-adjusted returns over time, benefitting creditors, and is recognized through a one-notch positive qualitative scorecard adjustment for Corporate Behavior. TD's ratings are further supported by strong asset quality, peer- leading capitalization, and very good liquidity, which protects against unexpected losses and market shocks. TD's US regional...

Toronto-Dominion Bank (The): Q3 2023 financial results: Higher PCL, elevated expenses and US margin compression offset solid revenue growth - Issuer Comment – 2023/08/25 – US$ 200.00 – ...This report was republished on 25 August 2023 with a corrected sequential earnings decline for the Wealth Management and Insurance segment....

Toronto-Dominion Bank (The): Q2 2023 financial results: Acquisition and integration-related charges and higher PCL offset solid revenue growth - Issuer Comment – 2023/05/26 – US$ 200.00 – ...Effective 1 February 2023, the regulatory minimum TLAC risk-based and leverage ratios is 24.5% and 7.25%, respectively, reflecting OSFI's increase in the domestic stability buffer (DSB) to 3.0%. For prior periods, the regulatory minimum TLAC risk-based and leverage ratios was 24.0% and 6.75%, respectively, including the DSB of 2.5% which was in effect since 31 October 2021. Source: Moody's Investors Service, Company Financials...

Moody's assigns Aa2 rating to TD's Fixed-to-Floating Rate Notes due May 1, 2024 - Rating Action – 2023/05/04 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Toronto-Dominion Bank (The): Q1 2023 financial results: Notable margin expansion in Canadian P&C and US Retail offsets higher PCL and expenses - Issuer Comment – 2023/03/02 – US$ 200.00 – ...Regulatory minimum TLAC ratio was 24.0%, including the DSB of 2.5% which was in effect since 31 October 2021. Effective 1 February 2023, the regulatory minimum TLAC ratio is 24.5% reflecting OSFI's increase in the DSB to 3.0%. Source: Moody's Investors Service, company financials...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Toronto-Dominion Bank (The): Update following ratings affirmation" Nov 22, 2023. Alacra Store. May 25, 2024. <http://www.alacrastore.com/moodys-credit-research/Toronto-Dominion-Bank-The-Update-following-ratings-affirmation-PBC_1387252>
  
APA:
Moody's Global Credit Research. (). Toronto-Dominion Bank (The): Update following ratings affirmation Nov 22, 2023. New York, NY: Alacra Store. Retrieved May 25, 2024 from <http://www.alacrastore.com/moodys-credit-research/Toronto-Dominion-Bank-The-Update-following-ratings-affirmation-PBC_1387252>
  
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