Fitch Ratings has affirmed its ratings on TD Ameritrade Holding Corp., and revised the outlook to stable from positive.

The rating affirmation follows TD Ameritrade’s announcement to acquire a portion of Fiserv’s Investment Support Services business. “To date, the integration between TD Waterhouse and Ameritrade has gone smoothly with debt service ahead of schedule,” it says. “Long-term ratings recognize TD Ameritrade’s position as a leading online discount brokerage firm that is also focused on generating more asset-based revenues. Cash flow has been strong and leverage ratios have also improved.”

The ratings outlook has been revised, Fitch explains, “recognizing the increase in goodwill, reversal of positive trends in tangible equity and an expectation that smaller acquisitions may continue further pressuring a return to positive equity.”

Fitch says it believes that the Fiserv deal presents additional scale in fee-based businesses. “The purchase comprises $28 billion in client assets, broken down between assets held by Registered Investment Advisers of $17 billion and assets held in third-party administered retirement plans of $10 billion. The transaction results in 500 new independent RIA relationships and is expected to be immediately accretive,” it notes.

The price for these assets is $225 million with the potential for an additional $100 million outlay if revenue targets are met, increasing goodwill, Fitch reports. Current debt outstanding was approximately $1.7 billion at March 31, and equity was $1.8 billion. Fitch continues to monitor the success of the company’s ability to meet synergies and debt reduction targets.