Seeking Alpha

S&P gives thumbs-up to CIT acquisition

  • CIT's planned acquisition of IMB Holdco LLC, the parent of Pasadena, CA-based OneWest Bank N.A., will likely notably improve CIT's credit profile," says S&P, affirming the company's BB long-term issuer credit rating and its B short-term ICR. The outlook is positive.
  • The agency does note the deal will weaken the company's robust capital position (some would say overcapitalized), and comes with integration and strategic risks and uncertainties.
  • "Importantly, the acquisition would provide CIT with a retail branch franchise that should help enhance its funding diversity and stability," says S&P, noting OneWest's 73 branches and $15B in deposits.
  • CIT is off 0.35% today after  yesterday's roughly 15% jump on the acquisition news.
  • Previously: CIT to purchase OneWest Bank for $3.4B
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