May 28 (Reuters) - Fitch revised the outlook on

Toronto-Dominion Bank's ( MLWIQXX ) credit ratings to "negative"

from "stable" on Tuesday, citing risks to its business from the

anti-money laundering probes it is facing.

The rating revision marks the latest headache from the

investigations that have led to the termination of some

employees and invited scrutiny from shareholders on the Canadian

banking giant.

The regulatory actions have clouded the outlook for the

bank's risk profile and earnings, Fitch said, adding that it

could also hinder its ability to do acquisitions in the United

States.

Canadian lenders have often looked to acquire industry

players south of the border to grab growth opportunities outside

of a saturated home market.

Last week, TD said it had set aside $450 million to cover

potential fines for one of the three regulatory probes on the

issue and is anticipating more monetary penalties.

The issue could distract the management from the bank's

operations, as they are likely to focus on addressing the

shortcomings in the bank's risk controls, Fitch said.

Fitch, however, reaffirmed the bank's long-term ratings at

'AA-,' continuing to rate its as high-grade.

It lauded the bank for its "resilient" financial profile,

diversified business, prudent underwriting and strong liquidity.

(Reporting by Niket Nishant in Bengaluru; Editing by Arun

Koyyur)