Berkshire Hathaway’s credit rating down and negative
Fitch Ratings has downgraded Berkshire Hathaway’s Issuer Default Rating (IDR) from AAA to AA+ and its senior unsecured debt ratings from AAA to AA.
The Rating Outlook for all entities is negative, it said.
Firtch said: “Today's actions are part of a broader review of insurance and financial services company ratings being conducted by Fitch, which includes taking a fresh look at various risk factors and criteria application in light of the current stressful economic environment. Related to this ongoing exercise, which has resulted in numerous insurance and other financial services sector downgrades in recent weeks, Fitch believes that 'AAA' ratings are not appropriate at the holding company level for financial-oriented enterprises given significant market volatility and correlation of risks under stress, recently observed throughout the global economy.
