Toronto-Dominion Bank (The)

Strong domestic retail platform Lower variability in future earnings Lower credit risk profile Successful shift in strategy to retail banking to date Better core deposit funding than peers Challenges associated with the expansion into U.S. retail and commercial banking industry through Banknorth Reduced future revenues from investment banking/corporate lending operations in the U.S. but also reducing risk Sustainability of discount brokerage operations in a consolidating and fiercely competitive U.S. industry Pressure on mortgage products market share Legal and reputational risks 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

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