CIT Says to Issue Less Debt on Path to High Grade
CIT Group, the biggest speculative-grade bond issuer this year, plans to limit bond sales and focus on increasing deposits as it tries to gain investment-grade status, Glenn Votek, the company’s treasurer, said in a telephone interview.
“You’re not going to see us doing $10 billion a year,” Votek said. “We’ll be a smaller unsecured issuer. It’ll be more opportunistic.”
CIT has issued $9.75 billion in high-yield debt this year, more than any single issuer during the same period since at least 1999, according to data compiled by Bloomberg.
Votek said CIT wants to increase deposits made through its online banking platform, CIT Bank, to account for 35 percent to 45 percent of total funding, up from 25 percent to 27 percent currently. The remaining funding would be split equally between unsecured debt and asset backed securities.