Jul 17, 2009By Austin Kilgore
An impending bankruptcy or other “credit event” of besieged lender CIT Group could hurt the flow of goods between manufacturers and retailers, but according to Fitch Ratings, would have a minimal impact on investment-grade ratings of synthetic collateralized debt obligations (CDOs). Fitch announced it downgraded CIT to single-C Thursday, after the lender learned late Wednesday it would not receive a second bailout from the federal bailout.
