Summary: CIT Group Inc. May 11
- ID: 1953442
- May 2011
- Standard & Poors
CIT Group Inc., a leading provider of financing to middle-market companies and small businesses, emerged from prepackaged bankruptcy with a strengthened financial profile. Although these financial benefits factor into Standard & Poor's Ratings Services' assessment of the firm's relative credit quality, the company's reliance on wholesale funding, execution risks associated with its hybrid funding strategy, and weak core profitability limit the rating. CIT's reorganization strengthened its financial profile, and these benefits factor positively into our rating. Approximately 30% of the firm's unsecured debt was extinguished in bankruptcy, bolstering capital. The full benefit to capital is being realized incrementally, as loan and lease discounts established as a result of the application of fresh-start accounting (FSA) accrete during the life of the...
Companies mentioned in this report are: CIT Group Inc.
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