Ceylease Financial in Rating Watch

Fitch Ratings Lanka has placed Ceylease Financial Services Ltd's (CFSL) National Long-Term 'BB+ (lka)' rating on Rating Watch Evolving (RWE).

The rating action follows Merchant Bank of Sri Lanka Plc's (MBSL) announcement on 4 May 2011 that the Central Bank of Sri Lanka has provided "in-principle approval" for the issue of a specialised banking license to MBSL.

The license is subject to a merger between CFSL (55%-owned by Bank of Ceylon, Merchant Credit of Sri Lanka and MBSL Savings Bank.