Moody's Raises Ratings Of TD Ameritrade Holding

NEW YORK (AP) — Moody's Investors Service on Monday lifted its investment-grade ratings on TD Ameritrade Holding Corp. one notch higher, citing the online retail brokerage's improved operating performance and reduced credit risks.

Moody's raised the company's issuer and senior secured debt ratings to "Baa1" from "Baa2," and assigned a stable outlook. The current "Baa1" rating is three notches above Moody's highest speculative, or "junk," rating.

TD Ameritrade's large size has allowed it "to perform impressively through the market turmoil," Alexander Yavorsky, a Moody's vice president, said in a statement. "Our analysis shows that the company's credit metrics should continue to hold up well in a variety of market environments."

Recent acquisitions have added to the Omaha, Neb., company's earnings power, Yavorsky said.

The company has recently used debt to help finance acquisitions and buy back stock. Any further upgrades will heavily depend on whether the company "chooses to maintain leverage within a conservative range," Yavorsky said.

Shares of TD Ameritrade rose 6 cents to $21.01 in afternoon trading.