Fitch Downgrades CIT's IDR to 'D' on Bankruptcy Filing

NEW YORK, Nov 02, 2009 (BUSINESS WIRE) -- Fitch Ratings has downgraded the long-term Issuer Default Ratings (IDRs) of CIT Group Inc. (CIT) to 'D' from 'RD' following the company's filing of a voluntary petition seeking relief under Chapter 11 of the U.S. Bankruptcy Code. The ratings of CIT Bank and the company's other operating subsidiaries remain unchanged as they were not included in yesterday's bankruptcy filing.

Fitch has downgraded the following ratings: CIT Group Inc.: --Long-term IDR to 'D' from 'RD; --Short-term IDR to 'D' from 'RD'.

Fitch expects to assign Recovery Ratings (RRs) on a debt level basis once additional information is reviewed. While recovery at the subordinated debt and preferred stock levels are expected to be $0 or 'RR6', recovery for senior bondholders could be revised accordingly.

The following ratings remain unchanged: CIT Group Inc.

--Senior debt of 'C/RR4'; --Subordinated of 'C/RR6'; --Junior subordinated debt of 'C/RR6'; --Senior subordinated debt of 'C/RR6'; --Preferred stock of 'C/RR6' --Short-term debt of 'C'; --Individual rating of 'F'; --Support rating of '5'; --Support floor of 'NF'.

CIT Bank --Long-term IDR 'C'; --Long-term deposits 'CCC/RR2'; --Short-term IDR'C'; --Short-term deposits 'C'; --Individual rating 'E'; --Support rating '5'; --Support floor 'NF'.

CIT Funding Group of Canada, Inc.

--Long-term IDR 'C'; --Senior debt 'C/RR4'; --Short-term IDR 'C'.

CIT Group (Australia) Inc.

--Long-term IDR 'C'; --Senior 'C/RR4'; Additional information is available at 'www.fitchratings.com'. The ratings above have been initiated by Fitch as a service to investors. The issuer did not participate in the rating process other than through the medium of its public disclosure.

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SOURCE: Fitch Ratings CONTACT: Fitch Ratings Brian Bertsch, [phone] (New York) [e-mail] Vincent Arscott, CFA, [phone] (New York) William Artz, [phone] (Chicago) Copyright Business Wire 2009 -0- KEYWORD: United States

North America

New York INDUSTRY KEYWORD: Professional Services

Finance SUBJECT CODE: Bond/Stock Rating