Moody's upgrades CIT

Moody's Investors Service said it upgraded the ratings of CIT Group Inc. and its subsidiary, CIT Bank, NA.

The upgrades include CIT Group's senior unsecured rating to Ba1 from Ba2, CIT Bank's baseline credit assessment and adjusted baseline credit assessment to Baa3 from Ba1, long-term deposit rating to Baa1 from Baa2 and its issuer rating to Ba1 from Ba2.

The bank's short-term deposit ratings were affirmed at prime-2.

The outlook is positive.

The ratings are based on the company's reduced use of market funds, improved predictability of operating earnings and increased emphasis on less risky secured lending, Moody's said.

The ratings also reflect the bank's continued efforts to refine deposit taking strategy and improve deposit quality, the agency said.

The ratings are supported by the company's well-established competitive positioning in multiple commercial finance businesses, along with its revenue and geographic diversity, Moody's said.

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