Fitch Affirms & Removes Bermuda Commercial Bank From Rating Watch Evolving.

CHICAGO & NEW YORK -- Fitch has affirmed the short-term and individual ratings of Bermuda Commercial Bank (BCB) and has removed the ratings from Rating Watch Evolving.

This action reflects recent developments indicating BCB's previously announced efforts to seek a buyer or strategic partner for the bank may not be completed in the near future. The action also reflects the stabilization of BCB's funding base, improved profitability and liquid balance sheet. For these reasons, BCB's ratings are unlikely to change in the near term and the Evolving Watch status is no longer appropriate.

In February 2008, BCB disclosed in a letter to shareholders that the proposed sale or strategic partnership announced over eighteen months ago has subsequently taken much more time than initially anticipated. Despite efforts by BCB to close on an agreement, the controlling shareholder, the Central Bank of Netherlands-Antilles (CBNA), has not approved a proposed deal. Further, the timeline to reach an agreement with a strategic partner or an outright purchaser of the bank is not clear at this time. CBNA is currently the largest shareholder due to its seizure of FCIB. Fitch continues to follow this situation closely.

The rating affirmation reflects BCB's highly liquid, low credit risk balance sheet evidenced by approximately 99% of total assets comprised of cash and cash equivalents. More recently, BCB's deposit levels have stabilized following a significant decline during the latter half of 2006. The decrease in BCB's deposits was attributed to the negative publicity and investigation into VAT fraud surrounding its former majority shareholder, FCIB, and its former CEO and Chairman, John Deuss. Additionally, over the past two years, BCB performed a review of its client base that led to the termination of a number of client relationships. Although profitability measures are slightly lower than the peak level recorded in 2005, overall BCB's earnings have remained relatively stable despite the challenges it has managed through.

Fitch has affirmed the following ratings and removed from Rating Watch Evolving:

Bermuda Commercial Bank

--Short-term rating at`F2';

--Individual at 'C';

Fitch has affirmed the following rating:

--Support at '5'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.