Moody's reviews CIT

Moody's Investors Service said it placed CIT Group, Inc.'s Baa1 long-term and Prime-2 short-term ratings on review for downgrade.

The review is based on concerns about the sustainability of CIT's liquidity position, adverse trends in CIT's asset quality and borrowing costs, and their potential effect on the firm's profitability in future quarters, according to the agency.

The agency said protracted capital market contractions could reduce the number and quality of liquidity alternatives CIT could reliably turn to in order to preserve operating flexibility.

"In our view, recent conditions have presented obstacles to CIT's forward momentum in terms of achieving a stable funding profile," Moody's senior analyst Mark Wasden said in a written statement.

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