Toronto-Dominion Bank, The: Rating Report

On May 30, 2019, DBRS upgraded the long-term ratings of TD and its related entities, including TD’s Long-Term Issuer Rating, to AA (high) from AA. The Bank’s Short-Term Issuer Rating was confirmed at R-1 (high). The trend on all ratings was changed to Stable from Positive. TD’s Long-Term Issuer Rating is composed of an Intrinsic Assessment (IA) of AA and a Support Assessment of SA2, which reflect the expectation of timely systemic support from the Government of Canada (rated AAA with a Stable trend by DBRS). The SA2 designation results in a one-notch uplift to the Long-Term Issuer Rating. Under the new Canadian Bank Recapitalization Regime (the Bail-In Regime), DBRS expects to eventually remove the uplift from systemic support once the Bank has issued a sufficient level of bail-inable senior debt, which would thereby provide an adequate buffer for non-bail-inable obligations and is then expected to offset the removal of systemic support.