CIT, the US financier with an Australian finance company subsidiary has conceded that its primary US business won't qualify for any financial aid from the US government, and unless bond holders agree to a conversion of debt to equity the market is assuming that its collapse is inevitable. Ratings agency Fitch overnight drastically downgraded its rating to C, assuming an imminent event of default.In Australia, the local business has around $900 million in assets. Of this, $300 million is funded through a medium-term note program. The financier has reduced and perhaps eliminated its call on the short-term money market.As of December 2008 the remainder of the assets were funded by the US parent, either through loans or equity.CIT is, or was, a primary supplier of vendor finance to Dell for its computer sales and also to Honda for cars, bikes and other equipment.The finance company otherwise has retail and point of sale relationships with a diverse group of businesses.The business has been profitable, reporting a net profit in the year to December 2008 of $32.9 million in the year up from $15.4 million the year before, and so with a return on assets of 3.7 per cent. However, a chunk of the 2008 profit was attributed to a fair value gain on an interest rate swap, though margins on the underlying finance business still improved.The Age today suggested that Commonwealth Bank and Westpac are looking at buying the business of CIT.