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Daily Insurance Industry News
Saturday 21st of October 2017
March 26, 2009

Berkshire Hathaway may lose AAA credit rating

by David Masters

Story link: Berkshire Hathaway may lose AAA credit rating

Insurance and investment firm Berkshire Hathaway may have its AAA credit rating from Standard & Poor’s (S&P) removed.

The company, owned by billionaire tycoon Warren Buffett, has seen its share price plunge 32% over the last year over concerns that its equity portfolio may decline.

Because of these concerns, Berkshire Hathaway’s AAA rating could be cut in the next 12 months, S&P said in a statement yesterday.

Any downgrade would most likely be a one-notch cut, and will only occur if deterioration in the equity markets further hurts the company’s capital.

S&P’s Ratings Services also revised its outlook on Berkshire Hathaway from stable to negative because the company’s available capital has dropped below AAA levels.

Fitch Ratings stripped Berkshire Hathaway of its AAA rating earlier this month.

 

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