Toronto-Dominion's IDR ratings affirmed on Commerce Bancorp buy - Fitch |
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Wed, 03 Oct 2007 07:25
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BANGALORE (Thomson Financial) - Fitch Ratings affirmed Toronto-Dominion (TD) Bank's issuer default and senior unsecured debt ratings at 'AA-' with a stable outlook on the news that the Canadian bank has reached an agreement to acquire Commerce Bancorp Inc for about 8.5 bln usd.The agency also affirmed the bank's short-term IDR at 'F1+', individual rating at 'B', support rating at '1', and preferred stock and subordinated debt 'A+'.The rating agency said this is a 'fairly' sizeable acquisition for TD, it is one that brings TD an attractive retail operating model with good deposit generation and brand awareness.The acquisition will reduce TD's consolidated capital ratios, although Fitch said it views the projected reductions as manageable.Fitch said its assessment of TD reflects its strong Canadian retail franchise, good earnings performance, solid asset quality, adequate capitalization and strong risk management practices.The rating agency also revised the watch status on Commerce Bancorp to positive from negative reflecting the anticipation that it will become a wholly-owned subsidiary of TD, when the merger is completed.TFN.newsdesk@thomson.comkkb/ranCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Toronto-Dominion affirmed; Commerce Bancorp on review for upgrade - Moody's 