CIT » Topics » WE MAY BE ADVERSELY AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO INDUSTRIES, PRODUCTS OR GEOGRAPHIES.

These excerpts taken from the CIT 10-K filed Feb 29, 2008.

WE MAY BE ADVERSELY AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO INDUSTRIES, PRODUCTS OR GEOGRAPHIES.

A recession or downturn in the U.S. or global economies or affecting specific industries, geographic locations and/or products could make it difficult for us to originate new business, given the resultant reduced demand for consumer or commercial credit. In addition, a downturn in certain industries may result in a reduced demand for the products that we finance in that industry or negatively impact collection and asset recovery efforts.

Credit quality also may be impacted during an economic slowdown or recession as borrowers may fail to meet their debt payment obligations. Adverse economic conditions may also result in declines in collateral values. Accordingly, higher credit and collateral related losses could impact our financial position or operating results.

For example, decreased demand for the products of various manufacturing customers due to a general economic slowdown may adversely affect their ability to repay their loans and leases with us. Similarly, a decrease in the level of airline passenger traffic due to general economic slowdown or a decline in shipping volumes due to a slowdown in particular industries may adversely affect our aerospace or rail businesses.

WE MAY BE ADVERSELY AFFECTED BY CONTINUED DETERIORATION IN MARKET CONDITIONS AND CREDIT QUALITY IN THE HOME LENDING AND RELATED INDUSTRIES.

The U.S. residential market and home lending industry began showing signs of stress in early 2007, with credit conditions deteriorating rapidly in the second quarter of 2007 and continuing into the third and fourth quarters of 2007, including  

    Item 1A: Risk Factors       PAGE  9

increased rates of defaults and foreclosures, stagnating or declining home prices, and declining sales in both the new construction and the resale markets.

These market conditions were reflected in the deterioration of credit metrics of our home lending portfolio and the decreased market liquidity for such portfolios and resulted in higher charge-offs and significant valuation allowances through year end 2007. These changes in the home lending and home construction industries have also resulted in reduced demand for certain types of railcars that are used to transport building materials, produced higher volatility and reduced demand from investors in the high yield loan markets, generated concerns about credit quality in general, and hampered activity in the syndication market, among other effects.

We will continue to be adversely affected by conditions in the U.S. residential home lending industry if they continue to deteriorate further. It is also likely that we will be adversely affected if the conditions in the home lending industry negatively impact our other consumer businesses or other parts of our credit portfolio or the U.S. or world economies. Finally, we may be adversely affected if the conditions in the home lending industry result in new or increased regulation of financing and leasing companies in general or with respect to specific products or markets.

WE MAY BE ADVERSELY
AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO
INDUSTRIES, PRODUCTS OR GEOGRAPHIES.



A recession or downturn in the
U.S. or global economies or affecting specific industries, geographic locations and/or products
could make it difficult for us to originate new business, given the resultant
reduced demand for consumer or commercial credit. In addition, a downturn in certain
industries may result in a reduced demand for the products that we finance in that
industry or negatively impact collection and asset recovery efforts.



Credit quality also may be impacted
during an economic slowdown or recession as borrowers may fail to meet their debt
payment obligations. Adverse economic conditions may also result in declines in
collateral values. Accordingly, higher credit and collateral related losses could
impact our financial position or operating results.



For example, decreased demand for
the products of various manufacturing customers due to a general economic slowdown
may adversely affect their ability to repay their loans and leases with us. Similarly,
a decrease in the level of airline passenger traffic due to general economic
slowdown or a decline in shipping volumes due to a slowdown in particular industries
may adversely affect our aerospace or rail businesses.



WE MAY BE ADVERSELY
AFFECTED BY CONTINUED DETERIORATION IN MARKET CONDITIONS AND CREDIT QUALITY IN THE HOME
LENDING AND RELATED INDUSTRIES.



The U.S. residential market and home
lending industry began showing signs of stress in early 2007, with credit conditions
deteriorating rapidly in the second quarter of 2007 and continuing into the third and
fourth quarters of 2007, including

 








 
 

Item 1A: Risk Factors       PAGE 
9






increased rates of defaults and foreclosures,
stagnating or declining home prices, and declining sales in both the new construction and
the resale markets.




These market conditions were
reflected in the deterioration of credit metrics of our home lending portfolio and the
decreased market liquidity for such portfolios and resulted in higher charge-offs and
significant valuation allowances through year end 2007. These changes in the home lending
and home construction industries have also resulted in reduced demand for certain types
of railcars that are used to transport building materials, produced higher volatility and
reduced demand from investors in the high yield loan markets, generated concerns about
credit quality in general, and hampered activity in the syndication market, among other
effects.










We will continue to be adversely
affected by conditions in the U.S. residential home lending industry if they continue to
deteriorate further. It is also likely that we will be adversely affected if the conditions in the
home lending industry negatively impact our other consumer businesses or other parts of
our credit portfolio or the U.S. or world economies. Finally, we may be adversely
affected if the conditions in the home lending industry result in new or increased
regulation of financing and leasing companies in general or with respect to specific
products or markets.







This excerpt taken from the CIT 10-Q filed Nov 6, 2007.

WE MAY BE ADVERSELY AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO INDUSTRIES, PRODUCTS OR GEOGRAPHIES.

A recession or downturn in the economy or affecting specific industries, geographic locations and / or products could make it difficult for us to originate new business, given the resultant reduced demand for consumer or commercial credit. In addition, a downturn in certain industries may result in a reduced demand for the products that we finance in that industry or negatively impact collection and asset recovery efforts.

Credit quality may also be impacted during an economic slowdown or recession as borrowers may fail to meet their debt payment obligations. Adverse economic conditions may also result in declines in collateral values. Accordingly, higher credit and collateral related losses could impact our financial position or operating results.

For example, the sub-prime loan industry is currently being affected by increased rates of defaults and foreclosures and stagnating or declining home prices, which is reflected in deterioration in the credit metrics of our home lending portfolio and the decreased market liquidity for such portfolios. These changes in the home lending industry and similar changes in our portfolio have resulted in higher charge-offs for our home lending portfolio, significant valuation allowances for that portfolio in the second and third quarters of 2007, and reduced lease demand for certain types of railcars that are used to transport building materials, among other effects. Similarly, higher volatility and reduced liquidity in the high yield loan markets, as well as concerns in the industry about credit quality in general, have hampered the syndication market, which has reduced our syndication fee income.

This excerpt taken from the CIT 10-Q filed Nov 5, 2007.

WE MAY BE ADVERSELY AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO INDUSTRIES, PRODUCTS OR GEOGRAPHIES.

A recession or downturn in the economy or affecting specific industries, geographic locations and / or products could make it difficult for us to originate new business, given the resultant reduced demand for consumer or commercial credit. In addition, a downturn in certain industries may result in a reduced demand for the products that we finance in that industry or negatively impact collection and asset recovery efforts.

Credit quality may also be impacted during an economic slowdown or recession as borrowers may fail to meet their debt payment obligations. Adverse economic conditions may also result in declines in collateral values. Accordingly, higher credit and collateral related losses could impact our financial position or operating results.

For example, the sub-prime loan industry is currently being affected by increased rates of defaults and foreclosures and stagnating or declining home prices, which is reflected in deterioration in the credit metrics of our home lending portfolio and the decreased market liquidity for such portfolios. These changes in the home lending industry and similar changes in our portfolio have resulted in higher charge-offs for our home lending portfolio, significant valuation allowances for that portfolio in the second and third quarters of 2007, and reduced lease demand for certain types of railcars that are used to transport building materials, among other effects. Similarly, higher volatility and reduced liquidity in the high yield loan markets, as well as concerns in the industry about credit quality in general, have hampered the syndication market, which has reduced our syndication fee income.

This excerpt taken from the CIT 10-K filed Mar 1, 2007.

WE MAY BE ADVERSELY AFFECTED BY DETERIORATION IN ECONOMIC CONDITIONS THAT IS GENERAL OR SPECIFIC TO INDUSTRIES, PRODUCTS OR GEOGRAPHIES.

A recession or downturn in the economy or affecting specific industries, geographic locations and / or products could make it difficult for us to originate new business, given the resultant reduced demand for consumer or commercial credit. In addition, a downturn in certain industries may result in a reduced demand for the products that we finance in that industry or negatively impact collection and asset recovery efforts.

As a result, credit quality may also be impacted during an economic slowdown or recession as borrowers may fail to meet their debt payment obligations. Adverse economic conditions may also result in declines in collateral values. Accordingly, higher credit and collateral related losses could impact our financial position or operating results.

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