Credit rating agency Standard & Poor's on Friday said it cut ratings of commercial financial services company CIT Group Inc.
CIT's counterparty credit rating was cut to "BBB+" from "A-." The new rating is still considered investment grade.
The ratings cut comes as S&P has taken an increasingly pessimistic view on the broader financial services industry. Noting that a global recession is increasingly probable, S&P said in a statement that financial firms will face more stress than those experienced in past downturns.
S&P said CIT would benefit from its plan to become a bank holding company - the regulatory structure of traditional commercial banks. But, S&P said it remains concerned about CIT transitioning to a new funding model and an expected new regulatory environment.
