Kroll Bond Rating Agency (“KBRA”) has assigned a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term rating of K3, to The Community Financial Corporation (NASDAQ:TCFC), a bank holding company based in Waldorf, Maryland. KBRA has also assigned a deposit rating of BBB+ and a short-term rating of K2 to Community Bank of the Chesapeake (the “Bank”), The Community Financial Corporation’s subsidiary bank. The outlook on all ratings is stable.
The BBB+ rating is based on Community Bank of the Chesapeake’s financial fundamentals as indicated by robust capitalization, strong performance on KBRA’s stress tests, and consistent financial performance. However, the rating is also tempered by the Bank’s relatively high levels of nonperforming assets, moderately high efficiency ratio, and CRE lending concentrations, as well as moderate earnings metrics and lack of growth. All factors are also balanced against the lack of potential systemic support at the holding company level by the Federal Reserve System and other regulators due to the enactment of the Dodd-Frank Act in 2010.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on May 2, 2013.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
