Fitch withdraws CIT Group ratings

AP News
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Posted: Dec 15, 2009 5:02 PM

Fitch Ratings said Tuesday it is withdrawing ratings on CIT Group Inc. and its subsidiaries because it does not have the necessary information and insight required to provide coverage following the commercial lender's emergence from Chapter 11 bankruptcy protection last week.

CIT, based in New York, was forced into bankruptcy in November after it failed to raise cash to pay off outstanding debt. The company was also hurt by mounting losses as customers fell behind on repaying loans amid the recession.

However, CIT was able to move through bankruptcy court in just six weeks because its key bondholders had already approved a reorganization plan. The company has already made plans to start lending again, on Monday committing to fund $500 million in new government-guaranteed loans to small business customers in 2010.

Shares of CIT dropped $2.30, or 8 percent, to close at $26.20.