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The rising value of a U.S. investigation into Toronto-Dominion Bank’s money-laundering controls is casting a darkening shadow over one of many strongest financial institution credit score rankings on the earth, with Moody’s Ratings following rivals in putting a detrimental outlook on the agency.
TD’s announcement final week that it’s stockpiling a further US$2.6 billion to resolve inquiries raises considerations concerning the severity of the case and its final toll, Moody’s stated in assertion late Tuesday.
The shift “displays the inherent uncertainty associated to the magnitude of monetary penalties and nature and length of doable nonfinancial penalties that it might incur associated to those challenges,” Robert Colangelo, a senior credit score officer at Moody’s, stated within the assertion. The episode “will not be constant” with the financial institution’s a1 baseline credit standing, he stated, noting the agency is among the many highest-rated banks globally.
A spokesperson for the financial institution declined to remark.
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Canada’s second-biggest lender estimated Aug. 21 that it could pay US$3 billion associated to its U.S. compliance lapses. Standard & Poor’s and Fitch Ratings modified their outlooks to detrimental earlier this 12 months, citing authorities scrutiny of its controls.
With help from Christine Dobby
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