DBRS Downgrades CIT Group Inc. to CCC, Remains Under Review Negative

DBRS has today downgraded the ratings of CIT Group Inc. and its related subsidiaries (CIT or the Company); including its Issuer and Long-Term Debt ratings to CCC from BB (low). Its preferred shares have been downgraded to C from CCC (low). Concurrently, the Company’s Short-Term Instruments rating remains R-5. All ratings remain Under Review with Negative Implications, where they were placed on April 24, 2009.

Today’s action follows CIT’s announcement today that it has been advised that additional support from the federal government will not be forthcoming over the near term. DBRS’s rating action reflects this announcement which adds significant pressure to CIT’s already weakened liquidity position. The previous ratings anticipated that some level of government support would be forthcoming, which given the Company’s comments now appears unlikely.

The ratings remain Under Review-Negative reflecting the fluid situation. DBRS’s review will consider the actions the Company may take to bolster its short-term liquidity profile.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating Banks and Bank Holding Companies Operating in the United States and Enhanced Methodology for Bank Ratings – Intrinsic and Support Assessments which can be found on our website under Methodologies.

This is Corporate (Financial Institutions) rating.