KBRA has assigned a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Chemung Financial Corporation. Its primary subsidiary, Chemung Canal Trust Company, received deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2.
The Outlook for all long-term ratings is Stable, reflecting the company's stable, low-cost, and granular funding base, supported by an extensive operating history and strong market share. KBRA also noted the company's conservative approach to liquidity management, with a loan-to-deposit ratio historically in the low- to mid-80% range.
The ratings are further supported by a predictable stream of non-spread revenue from its wealth management arm, which manages $2.2 billion in assets. KBRA highlighted an elevated investor commercial real estate concentration, nearly 400% of total risk-based capital as of Q1 2025, but acknowledged management's strategic focus on commercial and industrial lending is expected to gradually reduce this concentration over time.
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