TORONTO (Standard&Poor's) Dec. 21, 2010--Standard&Poor's Ratings Services today said its ratings and outlook on The Toronto-Dominion Bank (TD Bank; AA-/Positive/A-1+) are unchanged following the bank's announced transaction with Chrysler Financial. TD Bank today agreed to purchase Chrysler Financial, an independent auto finance company, for US$6.3 billion (goodwill amount is approximately US$400 million), which it expects to be financed with cash. The bank expects to close the transaction in April 2011 and for it to be neutral in year one. The majority of Chrysler Financial's operations are in the U.S. Excluded from the transaction will be Chrysler Financial's insurance businesses, foreign entities, and all commercial loan assets and related entities. We view the transaction positively from a
