Loan loss provisions to rise in the near term
Low leverage, superior liquidity positions and strong sponsorship support credit ratings
Rating actions forecast to be predominately negative through the next 18 months
Trend now negative
Most private pension plans in Canada are “in a relatively strong position, considering the poor equity market performance and falling interest rates that have affected returns”
Ratings supported by earnings diversity
Ratings supported by the bank’s sizable domestic franchise and its financial risk profile
Ratings underpinned by strong domestic banking
The rating agency expects TD’s domestic banking business to provide ongoing earnings stability
Methodology change prompts downgrade