Moody's drops CIT

Moody's Investors Service said it downgraded the senior unsecured rating of CIT Group Inc. to B3 from Ba2.

Additionally, Moody's said it placed CIT's long-term ratings on review for further possible downgrade.

The company's short-term rating remains Not Prime.

The agency added that the downgrade of CIT's ratings is based on Moody's growing concern with CIT's liquidity position and prospects for survival of the franchise.

In Moody's view, CIT has made inadequate progress in advancing its near-term liquidity initiatives to maintain an appropriate liquidity runway, including pending applications with the firm's regulators regarding access to TLGP and 23A asset transfers to CIT Bank.

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