DBRS Assigns B (high) Rating to CIT Group Inc.’s Series C Notes, Trend Positive

DBRS Inc. (DBRS) has today assigned its B (high) rating to the new Series C Notes issued by CIT Group Inc. (CIT or the Company).

The new Series C Notes were issued as a result of the Company’s completed exchange offer for outstanding Series A Notes. The new Series C Notes have maturities in 2015, 2016, and 2017. The trend on the ratings is Positive.

The rating considers the secured position of the Series C Notes, which benefit from a second lien on substantially all U.S. assets of CIT that are not otherwise pledged to secure the borrowings of special purpose entities and the equity of foreign subsidiaries. Moreover, the Series C Notes rank pari passu with the existing second lien Series A Notes and Series C Notes. Given the aforementioned, the rating reflects DBRS’s view that recovery on the Series C Notes would be less than the first lien notes but greater than the unsecured debt.

Today’s rating action does not impact the issuer rating of CIT, which remains B (high), with a Positive trend.

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

The principal applicable methodology is Rating Finance Companies Operating in the United States, which can be found on our website under Methodologies.

The sources of information used for this rating include the issuer. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Lead Analyst: Steve Picarillo
Rating Committee Chair: Alan G. Reid
Initial Rating Date: 17 May 2010
Most Recent Rating Update: 23 March 2011