S&P lifts CIT Group, debt to BB-; cuts loan

Standard & Poor's said it raised its long-term issuer credit rating on CIT Group Inc. to BB- from B+. The outlook is stable.

The agency said it also raised its ratings on the company's series C notes and legacy unsecured debt to BB- from B+ and B, respectively.

At the same time, S&P said it lowered the rating on the company's revolving credit facility to BB- from BB.

The agency said the rating actions reflect CIT's efforts to unencumber a large portion of its balance sheet, significantly lower its funding costs, and stabilize its business profile.

The stable outlook reflects S&P's expectation that CIT will reduce its funding costs and improve core profitability gradually over the next year by issuing additional unsecured debt and increasing deposits, the agency said.

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