Financial services provider CIT is taking strong exception to a Moodys downgrade that caused its share price to plunge more than 4%.
Moodys Corp. of yesterday downgraded CIT Group Inc. to Baa1, from a rating of A3, claiming that the New York firm faced difficult market conditions and increased debt fallout from mortgage-backed securities from the credit crisis.
The ratings firm also faulted the liquidity in the firms portfolio.
We disagree with the ratings actions that Moodys has taken, particularly in light of the significant progress we have made to strengthen our balance sheet, improve liquidity and position CIT for long-term success and profitability, CIT said in a statement released today.
We believe the financial profile and strength of our businesses will generate financial results consistent with A rating levels.
CIT said that it had raised $1.6 billion in new capital, completed financings of approximately $1 billion, sold over $2 billion of assets at approximately book value and underwrote $600 million of loans at the CIT Bank.
In the report downgrading CIT, New York-based Moodys said the firm was still "under review" for future possible downgrades.
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