Formidable domestic retail platform Conservative risk culture Above-average core deposit funding Growing North American retail banking presence Uncertain prospects for U.S. residential real estate exposure Potential for growing pressure on domestic revenues and margins due to competition and weak economic outlook The stable outlook reflects Standard&Poor's Ratings Services' view that Toronto-Dominion Bank (TD Bank)'s core retail-oriented franchise spanning both Canadian and U.S. markets incorporates sufficient resilience to weather a range of economic environments, even recognizing the potential for more drawn-out recoveries in both markets. We could lower the ratings on TD Bank if deterioration in economic conditions were to lead to material erosion in its profitability and capitalization, such that its risk-adjusted capital (RAC) ratio weakened and remained
