Fitch revises CIT Watch to positive

Fitch Ratings said it revised the rating watch to positive from evolving on CIT Group Inc.’s and CIT Bank, NA’s long-term issuer default ratings of BBB-. After CIT and First Citizens BancShares announced their planned merger, Fitch revised the rating watch on CIT to developing from negative.

The positive watch indicates CIT’s ratings could be upgraded or affirmed at their current level. Resolution of the rating watch will likely extend beyond six months, Fitch said.

“Fitch believes the combined entity will likely have a stronger company profile than CIT on a stand-alone basis. Notably, the new entity will have an improved funding profile with a stronger deposit franchise and an improved cost of funds, with less reliance on online deposits, and a business model that will more closely resemble higher-rated regional bank peers,” the agency said in a press release.

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