Standard & Poor’s Cuts CIT Rating

By Jul 13, 2009, 5:29 PM Author's Blog  

Standard & Poor’s on Monday cut its ratings on CIT Group (CIT), as the lender’s dislocation in capital markets continues to place pressure on co.’s funding model.

From MarketWatch:

Standard & Poor’s Ratings Services said Monday that it downgraded CIT Group and warned that the lender may try to restructure its debt, possibly through bankruptcy or through a “distressed” exchange offer. S&P lowered the company’s counterparty credit ratings to CCC+/C from BB-/B.

“CIT has more than $1 billion of unsecured notes maturing in both third- and fourth-quarter 2009–payments that could become increasingly difficult to make if borrower draws increase significantly and CIT does not win regulatory approval of its strategic initiatives,” the rating agency said in a statement.

This latest S&P downgrade reflects once again the co.’s further erosion in liquidity, as its ability to repay maturing obligations and meet lending commitments keeps shrinking.

  • SHARE:
  • Share on StockTwits


SPY209.14  chart+2.35  chart +1.14%
GOOG626.69  chart-0.57  chart -0.09%
AAPL123.2899  chart+0.5199  chart +0.42%
TSLA264.11  chart+11.10  chart +4.39%
TWTR36.41  chart+1.71  chart +4.93%
BBRY7.76  chart+0.48  chart +6.59%
NFLX107.0266  chart+0.5966  chart +0.56%
FB95.255  chart+1.085  chart +1.15%

Nikkei20328.89  chart-21.21  chart -0.10%
UK6555.28  chart+50.15  chart +0.77%
France4977.32  chart+49.72  chart +1.01%
Germany11173.91  chart+117.51  chart +1.06%

EUR / USD1.1053  chart-0.0041  chart -0.37%
GBP / USD1.5602  chart+0.0042  chart +0.27%
CAD / USD0.7731  chart+0.0062  chart +0.81%
AUD / USD0.7329  chart+0.0061  chart +0.84%

Gold Fut1094.50  chart-2.10  chart -0.19%
Oil Fut47.77  chart+0.38  chart +0.80%