S&P Puts CIT EC-EF 2001-A Owner Tr Sub B Rtg on Watch.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 26, 2003 Standard & Poor's--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today placed its rating on the subordinate class B note of CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. EC-EF 2001-A Owner Trust on CreditWatch with negative implications (see list). The CreditWatch placement reflects the negative performance trends experienced by the underlying pool of commercial loans and leases on "mid-ticket" items, including construction, manufacturing, and transportation equipment. After 24 months of performance, both cumulative net losses and gross defaults have significantly exceeded Standard & Poor's initial expectations. As of the August 2003 distribution date, reported cumulative net losses are 3.41%, while cumulative net losses on liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. contracts equal 0.93%, each as a percentage of the initial contract pool balance. Although overall recovery rates have improved during the past few months (causing loss severity rates to decline), there have been spikes spikes see peplomer. in the frequency of defaults. CIT Group Inc., the issuer, attributes the high frequency of defaults to the stressed economic conditions and the softness in collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although values seen in the equipment loan and lease sector during the past few years. Standard & Poor's will complete a detailed review of the credit performance of the CIT EC-EF 2001-A Owner Trust subordinate class B note relative to the remaining credit support to determine if a rating action is necessary.
RATING PLACED ON CREDITWATCH NEGATIVE
CIT EC-EF 2001-A Owner Trust
Rating
Class To From
B A/Watch Neg A
Copyright 2003, Standard & Poor's Ratings Services |
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