Summary: The Toronto-Dominion Bank

Very strong domestic retail platform anchoring a diverse business portfolio Effective risk management and well-articulated risk appetite Successful acquisition history Higher exposure than peers' to cards and auto lending, riskier lending given its unsecure nature Reliance on wholesale funds, though to a lesser degree than peers The stable outlook reflects our expectation that The Toronto-Dominion Bank (TD Bank) will continue to post strong operating results and maintain its premier franchise with either the No. 1 or No. 2 market share position in all of its domestic consumer products. The stable outlook also reflects our expectation that the bank will manage its loan risk exposures in its consumer portfolios to contain large losses. Over our two-year outlook horizon, we could lower

...Outlook: Stable The stable outlook reflects our expectation that The Toronto-Dominion Bank (TD Bank) will continue to post strong operating results and maintain its premier franchise with either the No. 1 or No. 2 market share position in all of its domestic consumer products. The stable outlook also reflects our expectation that the bank will manage its loan risk exposures in its consumer portfolios to contain large losses. Over our two-year outlook horizon, we could lower the issuer credit rating (ICR) if we lower the stand-alone credit profile (SACP). We could lower the SACP if the bank's exposure to credit cards and auto loans, riskier loans in our view, represented an appreciably higher proportion of loans than it does today (around 13% of loans) and if the risk profile of those exposures were to increase; or if credit quality metrics were to deteriorate to a level that would no longer support a strong risk position; or if the strategy to expand in the U.S. wholesale lending portfolio...

Summary