Fitch downgrades CIT

Fitch Ratings said it downgraded CIT Group Inc.'s long-term issuer default rating to A- from A, short-term issuer default rating to F2 from F1, senior debt rating to A- from A, subordinated/preferred rating to BBB+ from A- and short-term debt rating to F2 from F1.

The outlook is negative.

The downgrade reflects liquidity challenges over the past year from capital markets disruptions, which caused CIT to execute its contingency funding plan, the agency said.

As a result, Fitch said the company's financial flexibility has been reduced as it relies on secured funding sources or asset sales to generate liquidity.

The agency said it acknowledges the steps to shore up liquidity and strengthen the balance sheet and the fact that CIT has been able to weather liquidity disruptions supports the current rating.

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