Fitch said it expects the favourable trend in recoveries to continue in 2011 given strengthened credit management and better macro economic conditions.
Fitch said the long-term rating benefits from the fact that Bank of Ceylon, rated 'AA(lka)' which has a 55 percent shareholding of CFS, intends to retain CFS within its wider group through merger with its several other group companies.
A majority of CFS's board consists of senior BOC officials, including a Director who is chairman of CFS, and Chief Financial Officer. BOC also appoints CFS's Managing Director.
BOC also continues to be a key creditor to CFS and subscribed to its rights issue that brought in 100 million rupees of fresh equity in late-2009.
On 26 August 2010, Merchant Bank of Sri Lanka, a 72 percent-owne