Kroll Bond Rating Agency on Feb. 23 changed its "negative" outlook on Community Financial Corp.'s ratings to "stable."

The Waldorf, Md.-based company's senior unsecured debt rating was affirmed at BBB, the subordinated debt rating at BBB- and the short-term debt rating at K3.

Subsidiary Community Bank of the Chesapeake's deposit and senior unsecured debt ratings were affirmed at BBB+, the subordinated debt rating at BBB and the short-term deposit and debt ratings at K2.

The earlier negative outlook had reflected "persistently elevated levels of nonperforming assets ... as well as high noncore funding dependence, and below-average earnings metrics." Community Financial is now showing "receding levels of nonperforming assets, low levels of net charge-offs, expectations of stable, though below-average earnings, and a leading deposit market share."

Community Financial in January closed its acquisition of County First Bank.