Fitch Ratings has upgraded the long-term ratings of TD Banknorth Inc., and removed from it from rating watch.

The long-term ratings of Banknorth and its affiliates were placed on Rating Watch Positive on Aug. 26, 2004, following the announcement that TD Bank would acquire a majority ownership position in the company. The rating action comes after the completion of TD’s acquisition of 51% of the outstanding shares of Banknorth.

The upgrade of BNK’s long-term ratings reflects the enhanced support provided by TD as a majority shareholder, Fitch explains. Fitch believes that BNK benefits by being majority owned by the highly rated banking company and that the probability of support from TD is extremely high should BNK encounter financial difficulties. Fitch also expects that TD’s ownership in BNK will gradually increase over time from the current 51% ownership stake.

BNK has successfully built a considerable New England-based franchise, which includes strong deposit market shares within its footprint, Fitch adds. “BNK has established itself as a capable acquirer and integrator, as the company continues to grow its franchise with little disruption to its operations, evidenced by BNK’s consistent performance and solid asset quality,” it notes.