Thursday, March 15, 2007

S&P Raises TD Bank's Debt Rating to AA-

Bloomberg, Doug Alexander, 15 March 2007

Toronto-Dominion Bank, Canada's second-largest lender, had its debt rating raised one level by Standard & Poor's, which cited rising profit growth from the bank's consumer lending and asset management businesses.

The bank's rating was increased to AA-, the fourth-highest investment grade, from A+, S&P said in a statement today. The outlook is stable.

``The upgrading reflects TD Bank's ability to consistently deliver strong core operating results,'' S&P said. The rating company also credited Toronto-Dominion's plan to buy the shares it doesn't own in its U.S. consumer banking unit, TD Banknorth Inc.

Toronto-Dominion is ``well positioned'' to meet or exceed its 2007 financial targets with revenue growth driven by its Canadian consumer bank and wealth management unit, S&P said.

Toronto-Dominion's rating was cut by S&P to A+ from AA- in 2002. With the increase, Toronto-Dominion's debt rating matches rivals such as Bank of Nova Scotia and Royal Bank of Canada.