The ratings on Toronto-Dominion Bank (TD Bank) reflect Standard&Poor's Ratings Services' view of the bank's conservative risk culture and formidable domestic retail franchise, which continues to be the core growth engine with a substantial base of stable earnings. In addition, the bank has used its domestic strength to build out an increasing retail banking presence in North America, where it now ranks among the top 10 institutions in terms of asset size and deposits. Its rapidly growing presence in the U.S., however, exposes TD Bank to the economic and asset quality difficulties that have been the source of elevated levels of impaired loans and provisions for credit losses (PCL) during the past three years. Furthermore, and in addition
