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Bulletin: CIT Group Inc. $2.1 Billion Net Loss Will Not Affect Ratings Jul 08
Standard & Poors, July 2008
Abstract
NEW YORK (Standard & Poor's) July 17, 2008--Standard & Poor's Ratings Services said today that CIT Group Inc.'s (CIT; A-/Negative/A-2) consolidated net loss of $2.1 billion reported for second-quarter 2008 will not affect the current rating and outlook on the company. The consolidated net loss was driven by CIT's sale of its home lending business and manufactured housing portfolio; asset dispositions that, in our view, remove a significant amount of uncertainty in terms of future profitability and asset quality. Despite the size of the loss (the assets were sold at a significant discount), capitalization, as measured by the ratio of tangible equity to managed assets, increased to approximately 9%--a result made possible by CIT's $1.6 billion equity raise in April...
Companies mentioned in this report are: CIT Group Inc.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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