Were it not for an economy in shambles, it would seem unthinkable for Berkshire Hathaway to be rated anything but AAA. But Even Berkshire isn't looking as invinvible as it has always seemed, and guiding light Warren Buffett isn't getting any younger. And with that, Fitch lowered the company's default rating to AA+, and it now rates the company's senior unsecured debt at AA. The insurance and reinsurance units are still rated AAA but with a negative outlook. Berkshire joins GE in losing its AAA; earlier in the day S&P cut GE's rating to AA+.
Buffett’s role as chief investment officer also puts the company at risk if he becomes unable to do the job, Fitch said in a statement…..
“Fitch views this risk as unrelated to Mr. Buffett’s age, but rather Fitch’s belief that Berkshire’s record of outstanding long-term investment results and the company’s ability to identify and purchase attractive operating companies is intimately tied to Mr. Buffett,” Fitch said. Buffett is 78.
Buffett’s Berkshire Has AAA Debt Rating Cut by Fitch – Bloomberg
Tags: Ratings
