Fitch withdraws CIT Group's ratings

AP News
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Posted: Dec 11, 2009 12:31 PM

Fitch Ratings said Friday it has withdrawn its ratings of CIT Group Inc., which filed for bankruptcy protection in November, but quickly emerged earlier this month.

Fitch analysts said although CIT has come out of bankruptcy, they have too little information and insight to continue coverage.

CIT Group is one of the nation's largest lenders to small and mid-sized businesses. It swiftly navigated through bankruptcy in just six weeks because its key bondholders had already approved a plan to reorganize the company.

Shares rose 53 cents, or 1.8 percent, to $29.52. They've traded between $25.50 and $30.66 in the past 52 weeks.

Fitch also downgraded and withdrew coverage of CIT Group Funding Company Delaware, acknowledging its previous bankruptcy filing, which was not included in Fitch's prior rating actions.

Fitch analysts upgraded CIT's senior unsecured debt from a recovery rating of 4 to a rating of 3, to reflect the face value in new securities received in exchange for the old bonds that have been withdrawn by Fitch.

A recovery rating of 3 reflects good recovery prospects or an expected range of 50 percent to 70 percent.

Due to lack of detailed financial information, Fitch also withdrew CIT Australia's ratings at their current levels.