Fitch cuts certain Berkshire Hathaway ratings

Fitch Ratings has downgraded Berkshire Hathaway Inc.'s triple-A issuer default rating and senior unsecured debt ratings by one notch, saying a top rating isn't appropriate for financial-oriented holding companies in the current volatile market.

The agency affirmed its "AAA" insurer financial strength ratings on the company's insurance and reinsurance subsidiaries, but with a negative outlook.

Fitch said Berkshire's large, unhedged market exposures and potential earnings volatility is "inconsistent with the stability required at the 'AAA' level." The agency said Berkshire's investments in a wide variety of retail, service and manufacturing companies somewhat mitigate this exposure but that diversification isn't enough to warrant a triple-A rating.

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- Posted: 2009-03-13 07:56:18

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