The ratings on Toronto, Ont.-based The Toronto-Dominion Bank (TD Bank) reflect better-than-expected progress cleaning up the balance sheet and eliminating some of the variability in earnings through the disposition of large corporate loans and the streamlining of business units in the past year. Further supporting the ratings is TD Bank's strong domestic retail platform. Offsetting this is the uncertainty with the level of success of the major strategic orientation in the past year. The ratings are also constrained by TD Bank's change in management as the bank faces challenges replacing the significant exodus of revenues and earnings from wholesale lending operations and generating revenues in future, as domestic retail market share is pressured by heightened competition. Furthermore, the U.S. discount
