Fitch maintains Ceylease's 'BB+(lka)' on RWP
Fitch Ratings Lanka is maintaining Ceylease Ltd's (CL) National
Long-Term rating 'BB+(lka)'on Rating Watch Positive (RWP).
CL was placed on RWP in January 2013 following Merchant Bank of Sri
Lanka Plc's (MBSL) announcement in December 2012 that the Board of
Directors of MBSL has approved a merger between, CL and with MCSL
Financial Services Limited's (MFSL; BBB(lka)/Stable).
CL's rating reflects its association with its main shareholder Bank
of Ceylon (BOC) (AA+(lka)/Stable) in terms of its shareholding of 55% in
CL, and its representation on the latter's board. The RWP reflects the
likelihood of CL's rating being upgraded to align with MFSL's rating
upon the conclusion of the merger.