The ratings on The Toronto-Dominion Bank (TD Bank) reflect the bank's formidable domestic retail operations--the largest of the Canadian banks--and benefit from a low risk industry and refocus on this business segment. The ratings also reflect significantly better-than-expected progress cleaning up the balance sheet, reducing risk, eliminating some of the variability in earnings through the disposition of noncore large corporate loans, and avoiding financial losses as credit markets improved markedly. Future revenue growth, however, will be challenged due to the scaling back of international businesses resulting in more focused niche wholesale and investment banking operations and limited revenue upside in a very competitive, mature, domestic retail banking industry. The transition period for the bank and drain on economic profit is
