Fitch Places CIT on Rating Watch Negative

Business Wire, March 19, 2008

NEW YORK -- Fitch Ratings has placed the Issuer Default Rating (IDR) and debt ratings of CIT Group Inc. (CIT) on Rating Watch Negative as follows:

CIT Group Inc.:

--Long-term IDR at 'A';

--Short-term IDR at 'F1';

--Senior debt at 'A';

--Subordinated/preferred at 'A-'

--Short-term debt at 'F1'.

A complete list of ratings is included at the end of this release.

Fitch's action reflects the significant impact of credit market illiquidity on CIT's funding profile. Fitch believes that current market conditions have resulted in CIT's ability to source traditional unsecured funding at economically viable prices has been materially constrained. Fitch believes CIT may need to utilize established alternative sources of funding and liquidity, which include unsecured, committed bank lines totaling $7.3 billion. Absent recent liquidity related events, Fitch believes that CIT's fundamental performance remains sound considering the current environment. While CIT's business activities are not immune to the pressures in the market and economy, Fitch does not expect a material contraction in CIT's key performance metrics in 2008.

CIT's pursuit of alternative liquidity sources, including the aforementioned bank line, in of itself would not trigger a ratings downgrade. Fitch will monitor CIT's execution of funding plans. Further negative rating actions in the immediate term will be greatly determined by CIT's ability to source needed funding while retaining the appropriate level of funding relative to its asset base. If CIT is able to successfully navigate through these immediate challenges, Fitch is likely to remove the company from Negative Watch and assign a Negative Rating Outlook. The Negative Rating Outlook would remain in place until greater certainty on the performance of CIT's main business activities can be established and it is able to restore its access to a wider array of funding sources.

Fitch has placed following ratings on Rating Watch Negative:

CIT Bank Ltd.:

--Long-term IDR at 'A';

--Short-term IDR at 'F1';

--Long-term deposits at 'A'.

CIT Funding Group of Canada, Inc.:

--Long-term IDR at 'A';

--Short-term IDR at 'F1';

--Senior debt at 'A'.

CIT Group (Australia) Inc.

--Long-term IDR at 'A';

--Short-term IDR at 'F1'

--Senior debt at 'A';

--Short-term at 'F1'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.