A Bloomberg article reports that less than three years after CIT emerged from bankruptcy, its CEO John Thain is persuading investors that its debt is as creditworthy as an investment-grade firm. The company has reduced its long-term debt by $10.5 billion since the end of 2010 as its average bond spread has dropped 151 basis points over the same time period.

Bloomberg reports that less than three years after CIT emerged from bankruptcy, its CEO John Thain is persuading investors that its debt is as creditworthy as an investment-grade firm.

Investors are clamoring for CIT’s securities as it polishes its credit profile by unencumbering assets and replacing high interest-rate debt with lower coupons. The commercial lender has chipped away at its balance sheet, reducing long-term debt by $10.5 billion since the end of 2010 as its average bond spread has dropped 151 basis points over the same time period.

One analyst noted in a phone interview, “As they’re refinancing and as they’re improving their balance sheet, it’s a snowball effect of getting better rates, and they’re also coming at an opportune time because spreads are tightening.”