Credit rating agency DBRS is signing off on the two big bank acquisitions announced today.

DBRS has confirmed the ratings of TD Bank following the announcement that it has signed a definitive agreement to acquire 100% of the common shares of Commerce Bancorp, Inc. in an US$8.5 billion deal.

Additionally, DBRS says that Royal Bank of Canada’s acquisition of 100% of the shares of RBTT Financial Holdings Ltd. in the Caribbean for a price of US$2.2 billion (60% cash/40% shares), is not expected to have a material impact on the overall credit profile of the bank.

DBRS says it confirmed the TD’s ratings because Commerce’s business is geographically and strategically complementary to TD’s existing US banking franchise, that TD is mindful of Commerce’s service-oriented strategy, and Commerce has a strong deposit franchise, solid credit quality and excellent liquidity.

The rating agency also notes that, with the deal, TD is: addressing its challenge of long-term growth in retail banking; maintaining its conservative retail/wholesale mix; and strengthening its branch network in the U.S. Northeast.

DBRS adds that TD’s credit risk profile remains conservative, and short-term integration risk is low.

The ratings agency also sees challenges for TD, such as: preserving Commerce’s unique business strategy; TD’s increased regulatory leverage; and, medium-term integration risk.

Additionally, DBRS says that Royal Bank of Canada’s acquisition of 100% of the shares of RBTT Financial Holdings Ltd. in the Caribbean for a price of US$2.2 billion (60% cash/40% shares), is not expected to have a material impact on the overall credit profile of the bank.

The acquisition, which requires RBTT shareholders and regulatory approvals, is expected to close in mid-2008.

DBRS says that RBC’s capital ratios will deteriorate modestly at the close of the transaction, but will remain satisfactory. It also says that the acquisition is consistent with RBC’s strategic objective to grow outside of Canada.