The ratings on The Toronto Dominion Bank (TD Bank) reflect its capitalization, which is considered the weakest of the Canadian banks because of the C$5.2 billion in goodwill and intangibles created with the acquisition of CT Financial Services Inc. (Canada Trust) in February 2000. The large goodwill component has resulted in a very low average tangible common equity to risk-weighted assets ratio compared with the bank's peers. Amortization of goodwill and intangibles has depressed reported GAAP earnings. Nevertheless, cash earnings, which are viewed as a more meaningful metric for TD Bank, continue to grow. Overall, Standard&Poor's considers the bank's risk profile on balance to be slightly above average, requiring higher levels of capital. TD Bank's reliance on securitization
