Toronto-Dominion Bank’s recently announced acquisition of Greystone Managed Investments Inc. is in line with the bank’s plans to grow its wealth management business, Toronto-based credit rating agency DBRS Ltd. said Wednesday.

TD will acquire Regina-based Greystone for approximately $792 million in cash and stock.

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Its ratings for the bank, including its long-term issuer rating is “AA” with a positive trend, are not impacted by the deal, DBRS says in a news release.

The transaction is expected to be accretive to adjusted earnings in the first year, and to reported earnings in the third year, DBRS says.

From a capital perspective, the deal will impact TD’s common equity tier one capital by less than 10 basis points, DBRS says, adding that TD’s capital ratios are “relatively strong” among the Canadian banks.

DBRS views the acquisition as consistent with TD’s strategy of expanding its wealth management business. “Greystone will add approximately $36 billion, or 10%, to TD’s $357 billion in assets under management. TD will operate the unit as TD Greystone Asset Management with the existing portfolio management team,” DBRS says.

Greystone’s focus on alternative asset management also diversifies TD’s product lineup, DBRS adds

The deal is expected to close by the end of the year.