Toronto-Dominion Bank

The stable outlook reflects our expectation that TD Bank's strong balance sheet and diversity of its business position the bank well for a slowing economy. We expect the bank to maintain manageable NCOs and its S&P Global Ratings RAC ratio at around 10%, which is in our adequate range of 7%-10%, over our two-year outlook horizon. We could lower our assessment of the bank's stand-alone credit profile (SACP) if the RAC ratio fell below 7% due to a large acquisition or performance hurt by significant losses and remain there; NCOs exceeded our expectations and were meaningfully higher than the peer average; or core customer deposit growth was negative for several quarters, resulting in liquidity metrics less comparable with peers'. An

...Toronto-Dominion Bank benefits from leading market share positions in domestic consumer lending. Toronto-Dominion Bank (TD Bank) has leading market shares (along with Royal Bank of Canada [RBC]) across a range of largely retail-oriented business categories in Canada; diversified revenue streams; and an extensive retail banking network in the eastern U.S. from Maine to Florida. S&P Global Ratings risk-adjusted capital ratio to remain around the 10% level Over our two-year horizon and barring acquisitions, we expect TD Bank to maintain its S&P Global Ratings risk-adjusted capital (RAC) ratio (10.1% at fourth-quarter 2022) at about 10%, which is in our adequate range of 7%-10%, supported by strong earnings generation....

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