Berkshire Hathaway's Credit Rating Knocked Down A Notch
Billionaire investment legend Warren Buffett's Berkshire Hathaway Inc. has had its credit rating lowered from AA+ to AA by Standard & Poor's Ratings Services.
In a statement, S&P says that even though Berkshire Hathaway has an "excellent business profile," the lower credit rating "better reflects our view of BRK's dependence on its core insurance operations for most of its dividend income." (S&P's statement is posted on its website, but you have to register to view it.)
S&P also notes that "management succession" factors into its thinking. As The Financial Times (registration required) notes:
"Mr. Buffett has said he and Berkshire's board have decided who will follow him as chief executive, but they have chosen not to make it public. The company intends to split the chairman and chief executive role that Mr Buffett plays, with his son serving as non-executive chairman."