The possibility that Bermuda Commercial Bank may be sold has given the Island's third bank a ratings lift.

Fitch Ratings said yesterday it was revising the the bank's Rating Watch status to "Evolving" from "Negative", meaning it is less likely the bank's credit rating will be lowered.

Fitch said it was taking the action after BCB's announcement that it was discussing a potential merger or alliance with other financial institutions and the confirmation of one potential partner ? Butterfield Bank ? that such talks are ongoing.

Former BCB chairman John Deuss resigned earlier this month and is being held in the Netherlands to be questioned about alleged irregularities in the running of his Caribbean-based First Curaao International Bank (FCIB).

FCIB is the largest shareholder in Bermuda Commercial Bank. The 64-year-old multi-millionaire banker arrived in his home country after flying voluntarily from Bermuda, where he has lived for more than 30 years, on Thursday night escorted by two Dutch Policemen.

Rating Watch Evolving signals that the next rating action could either be Positive or Negative. Fitch believes that "there is now a significant possibility that BCB could be acquired by a higher rated entity which would likely result in an upgrade to BCB's ratings"."

A Fitch bulletin said the agency continues to follow this situation closely.