DBRS upgrades CIT Group

DBRS said it upgraded the ratings of CIT Group Inc., including its issuer rating to BB (low) from B (high). The trend on all long-term ratings remains positive. Concurrently, DBRS has confirmed the short-term instruments rating of R-4 with a stable trend.

DBRS said the rating action reflects DBRS's recognition of the significant progress CIT has achieved in improving its financial strength since the initiation of the rating in May 2010. Importantly to the ratings, this progress includes the substantial reduction in the high-cost debt which improves financial flexibility and has been a noteworthy contributor to the positive momentum in underlying earnings.

The ratings upgrade also considers the company's rejuvenated commercial lending franchise, the improving credit performance and very solid capital base. However, DBRS is mindful of the uncertain global economic recovery and is cautious as to the potential impact a stall in the recovery could have on CIT's positive momentum.

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