Moody's changes TD Ameritrade to positive

Moody's Investors Service said it affirmed TD Ameritrade Holding Corp.'s A3 long-term issuer and senior ratings and changed the outlook to positive from stable.

The agency said the change to a positive outlook is warranted by TD Ameritrade's enduring financial strength and Moody's developing view of there being a lower likelihood of TD Ameritrade engaging in a large, debt-funded acquisition, given its focus on organic growth and operating quality and ongoing success in attracting new customer assets.

TD Ameritrade's ratings reflect its strong operating results and excellent debt service capacity, with pre-tax margin, debt/EBITDA and interest coverage at 40%, 1.3x and 33x, respectively, on a trailing 12-month basis through June, Moody’s said.

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