The ratings on The Toronto-Dominion Bank (TD Bank) reflect Standard&Poor's Ratings Services' view of the bank's formidable domestic retail operations, which continue to be the core growth engine with a substantial base of stable earnings, and a conservative risk culture. In addition, the bank has used its domestic strength to build out an increasing retail banking presence in North America, where it now holds a No. 4 position in retail 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 2009 and year-to-date. Furthermore, and in addition to asset quality issues,
