We have observed trends of rising consumer leverage and elevated residential real estate prices in Canada, in conjunction with incremental deterioration of the domestic and global economic outlook. In our view, this poses a risk for Canadian banks given the importance of each bank's consumer credit loan portfolio. We are revising our outlook on Toronto-Dominion Bank to negative from stable and affirming our 'AA-' long-term and 'A-1+' short-term issuer credit ratings. The negative outlook reflects the possibility that we might lower the ratings on the bank if the growing economic imbalances were to lead us to a more negative view of the economic and industry environment in which Canadian banks operate. On July 27, 2012, Standard&Poor's Ratings Services
