NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Shippensburg, Pennsylvania based bank holding company, Orrstown Financial Services, Inc. (NASDAQ: ORRF or “the Company”). In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for the subsidiary bank, Orrstown Bank. The Outlook for all long-term ratings is Stable.
The ratings are supported by ORRF’s strong management team, the Company’s relationship banking approach with an emphasis on core depository funding, diversified revenue mix, and sophisticated infrastructure, which can support a significantly larger institution. The ratings are constrained by the Company’s relatively compact footprint and below average profitability, although profitability trends have been improving in recent periods.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
To access the report, click here.
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.