TORONTO (Standard&Poor's) June 22, 2005--Standard&Poor's Ratings Services today said that the ratings on The Toronto-Dominion Bank (TD Bank; A+/Stable/A-1) will not be affected by the recently announced intent to sell the U.S. discount brokerage business of TD Waterhouse to Ameritrade. TD Bank will retain potentially up to a 40% interest in TD Ameritrade. Standard&Poor's views this transaction as neutral to TD Bank's capital position because tangible common equity will improve by the reduction of the goodwill associated with the initial purchase of TD Waterhouse and retained earnings will strengthen. Nevertheless, Standard&Poor's still expects capital to be held against this substantial investment in Ameritrade. The transaction represents an opportunity for TD Bank to
