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 the bank's success at cleaning up the balance sheet, reducing risk, and eliminating some of the variability in earnings through the disposition of noncore large corporate loans. The successful expansion into the U.S. retail and commercial banking industry through the TD Banknorth platform and the opportunistic discount brokerage position, coupled with domestic operations that will continue to provide a substantial base of stable earnings, could give TD Bank the edge over some of its large competitors in the foreseeable future. The strict standards of generating
