S&P gives thumbs-up to CIT acquisition

|About: CIT Group Inc. (CIT)|By:, SA News Editor

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