Moody's affirms CIT, cuts outlook to negative

Moody's Investors Service said it affirmed CIT Group Inc.'s A2 long-term and Prime-1 short-term ratings, while changing the firm's outlook to negative from stable.

The change in outlook reflects Moody's view that, in coming quarters, CIT's profitability could be pressured to a degree that exceeds their normal cyclical bounds.

In addition, Moody's said it said it is concerned that an extension of current borrowing conditions could reduce CIT's overall operating flexibility in coming periods.

In Moody's view, CIT's current profitability level is susceptible to the emerging dual dynamic of increasing credit charges and higher funding costs.

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