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Anche Fitch ha portato il rating sotto l'IG. Considerazioni analoghe a quelle fatte da Moody's su liquidità, modello di funding, livelli di capitalizzazione e deterioramento degli asset in prospettiva nei prossimi quartes.
Fitch: CIT's Financial Flexibility Shrinking; IDR Downgraded to 'BB+'
24 Apr 2009 3:35 PM (EDT)
Fitch Ratings-New York-24 April 2009: Pressure on asset quality and liquidity have reduced CIT's financial flexibility, according to Fitch Ratings, which has downgraded CIT's long-term Issuer Default Rating (IDR) to 'BB+' from 'BBB'. The Rating Outlook for CIT remains Negative.
CIT's level of profitability will likely be strained in subsequent quarters which raises concern with the companies ability to retain acceptable levels of capital from a regulatory perspective as well as maintaining sufficient buffers to support current rating levels.
Fitch recognizes that CIT has been actively pursuing alternatives to address identified liquidity concerns. Primary components of CIT's action plan have focused on government related programs following CIT's approval as a bank holding company.
Specifically, CIT is seeking funding under the Federal Deposit Insurance Corporation's (FDIC) Temporary Liquidity Guarantee Program (TLGP) and flexibility under section 23A of the Bank Holding Company Act that governs transfers of assets between bank holding companies and the banks that the holding company owns.
Fitch notes that progress is being made on both fronts. Fitch's rating downgrade incorporates an expectation that CIT will be able to gain much of what it is seeking under these government programs, although the timing and precise levels can not yet be determined.
CIT's continued level of high reliance on government programs does establish a level of financial flexibility and control that is inconsistent with investment grade ratings.
While subsequent quarters are expected to bring clarity to a number of key rating factors, the development of CIT's liquidity profile needs to go beyond execution of getting access to government programs in order to remove liquidity concerns related to the ratings.
Evidence that CIT is moving in a direction of establishing access to a variety of funding sources, both secured and unsecured, are viewed as critical to its ability to operate soundly in the long-term. The change in status to a bank holding company and more active focus on developing the bank as a primary operating subsidiary, provide a foundation for CIT to achieve such goals.
If amounts requested under TLGP and 23A transfers are not approved or significantly less than anticipated, near-term pressure on the holding company's liquidity is likely. Should CIT's liquidity position deteriorate to a point where it must significantly reduce new loan originations or retain cash from portfolio payments to meet maturing debt obligations, such an outcome may not be supportive of a viable, long-term business model and may prompt Fitch to downgrade CIT's ratings further into speculative grade territory.
The Negative Outlook reflects Fitch's expectation that near-term liquidity will remain under pressure until the outcome of the company's request for TLGP and 23A is identified. Importantly, the outlook also highlights that CIT's core business activities will be challenged in the current operating environment. First quarter results reflect such challenges. Fitch expects such challenges to remain for the intermediate term.
The transfers of key asset classes to the bank may reduce liquidity and funding pressures, but asset quality performance will remain a challenge and will continue to strain profitability and capital.
A leveling off of asset quality deterioration is possible later in 2009 or early 2010, but Fitch believes it is premature to incorporate such developments into its rating at this time
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