close-up of the top of td canada trust tower building, toronto

Fitch Ratings Inc. says it has downgraded its outlook on TD Bank Group to negative from stable because of the potential fallout from anti–money laundering deficiencies at the bank.

The credit rating agency, which at the same time affirmed its long-term credit rating of AA- for the bank, says the negative outlook reflects the uncertainty stemming from the multiple investigations the bank faces about its anti–money laundering practices in the U.S.

Fitch says the outcomes could include both monetary and non-monetary penalties, including barriers to further acquisitions in the U.S., while efforts to address shortcomings could divert focus from ongoing operations.

TD reported results last week that showed its profits were down 22% from last year, largely because of a $615-million charge it took related to one of the investigations.

The bank said it was also pulling back on expansion plans in the U.S. as it continues discussions with regulators.

TD says other rating agencies have so far maintained their stable outlook on the bank.