04:02 PM EDT, 10/24/2024 (MT Newswires) -- Moody's on Wednesday downgraded the long-term debt ratings for The Toronto-Dominion Bank ( MLWIQXX ) (TD.TO, TD).

The Baseline Credit Assessment (BCA) is lowered from a1 to a2, the long-term Counterparty Risk Ratings from Aa1 to Aa2, and the long-term Counterparty Risk Assessment from Aa2(cr) to Aa3(cr).

The rating change comes after TD's announcement that it has resolved its civil and criminal investigations related to its US Bank Secrecy Act/anti-money laundering program with US regulators.

Moody's Ratings Vice President and Senior Credit Officer Robert Colangelo said the TD BCA downgrade reflects the extent and seriousness of the bank's risk management failures, highlighted by the settlement.

"Next year will be a transitional year for the bank's US operations as it continues to invest in its US BSA/AML remediation program and undertakes its balance sheet restructuring to comply with the asset cap that was imposed on its US bank subsidiaries," Colangelo added.