KBRA Assigns AA Deposit Rating to the Toronto-Dominion Bank

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns a deposit rating of AA and
short-term deposit rating of K1+ to The Toronto-Dominion Bank (NYSE: TD
or “TD Group”), an international financial services group. KBRA also
assigns deposit and senior unsecured debt ratings of AA- and short-term
deposit and debt ratings of K1+ to TD Bank, N.A., the lead U.S.
subsidiary. The Outlook for all long-term ratings is Stable.

The ratings are based on TD’s diversified business model, with a leading
banking and wealth/asset management franchise in Canada and solid market
position in the U.S., combined with strong through-the-cycle financial
performance and importance to the Canadian financial system. TD benefits
from a strong risk-adjusted capital position combined with earnings
stability and diversification as well as healthy asset quality. The
group has a sound funding and liquidity profile, although there is a
notable amount of wholesale funding in conjunction with TD’s corporate
banking and capital markets businesses. A continued economic slowdown in
Canada combined with housing price pressure may cause impaired loans and
provisions for credit losses to gradually normalize from extremely low
levels. That said, KBRA views TD as having very solid financial strength
owing to conservative risk management practices, high-quality regulatory
supervision, and the generally strong and stable macro profile of the
Canadian economy. The ratings of TD Bank, N.A. reflect its sound
financial metrics combined with KBRA’s belief that this strategically
important subsidiary would be supported by its parent bank in the
unlikely event of need. KBRA’s Stable Outlook assumes the continuance of
TD’s steady operating performance and financial strength over the medium
term.

A detailed report will be forthcoming.

The ratings are based on KBRA’s Global
Bank and Bank Holding Company Rating Methodology published on
February 19, 2016. The ratings were not solicited by The
Toronto-Dominion Bank.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus. KBRA is also recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Joanna Drobnik, CFA, Director
+353 (1) 588 1250
jdrobnik@kbra.com

Joseph Scott, Managing Director
+1 (646) 731-2438
jscott@kbra.com