DBRS downgrades CIT

DBRS said it downgraded the ratings of CIT Group Inc. and its related subsidiaries, including its issuer and long-term debt ratings to BBB (high) from A (low) and the preferred shares to B (high) from BB (high). The commercial paper rating remains R-2 (high).

All ratings were placed under review with negative implications.

These rating actions follow CIT's earnings release for the first quarter of 2009 and reflects DBRS' opinion that the company's financial profile will continue to be pressured by reduced market liquidity, higher funding costs and elevated credit costs. They also reflect DBRS's perspective that the company's earnings generation ability has been reduced and that its revenues will be constrained.

DBRS said it is concerned that the expectation of lower revenues comes at a time when solid revenues are required to absorb the elevated credit costs associated with this difficult credit cycle.

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