Moody's gives CIT convertibles A2

Moody's Investors Service said it assigned an A2 rating to CIT Group's $600 million mandatory convertible senior securities maturing in 2015.

The outlook is stable.

According to Moody's, the CIT mandatory convertible securities are comprised of two components: 1) a purchase contract for CIT's shares on a settlement date three years after the date of issuance and 2) interest in a CIT senior debt security.

The debt security is pledged to CIT as security for investors' obligations to purchase CIT's shares, the agency said, noting that five days before the purchase settlement date, the debt will be remarketed, with proceeds intended to be used to satisfy investors' share purchase obligations.

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