Bad News for Buffett: S&P Downgrades Berkshire Hathaway Rating

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Warren Buffett
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NEW YORK (AP) - Standard & Poor's Ratings Services cut a major rating for Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B).

The ratings agency dropped its investment-grade counterparty credit rating for the Omaha-based company by one notch to "AA" from "AA+."

S&P says the move better reflects Berkshire Hathaway Inc.'s dependence on its core insurance operations for most of its dividend income.

Significantly, it noted that "management succession at BRK is also an offsetting factor." Berkshire has picked a successor for the 82-year-old Buffett, but has not made the name of the person public.

S&P says the investment firm's non-insurance businesses generate most of its operating income, but aside from the insurance subsidiaries only Burlington Northern Santa Fe LLC has provided a significant part of its total dividends. The outlook on all of the ratings is negative.

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IN MY OPINION ONLY

Mr. Buffett could handle that and Donald Trump would get on his knees this way.

May 29 2013 at 11:33 PM Report abuse rate up rate down Reply
rogsuehull

Down Grade S & P

May 16 2013 at 9:17 PM Report abuse rate up rate down Reply
rogsuehull

Downgrade S & P

May 16 2013 at 9:16 PM Report abuse rate up rate down Reply
rogsuehull

Is nothing sacred.

May 16 2013 at 9:15 PM Report abuse rate up rate down Reply
savannahswithgod

Buffett and Gates will be alright. They will find a new America when this one folds.

May 16 2013 at 8:50 PM Report abuse +2 rate up rate down Reply
Pete

Is this the Buffett that sings about margaritaville?

May 16 2013 at 6:31 PM Report abuse rate up rate down Reply
djohn20811

I am sure it will make little difference as Warren Buffett, Obama, and their minions find ways to pay less taxes than their maids.

May 16 2013 at 5:59 PM Report abuse -2 rate up rate down Reply
booroy2

What a Bozo !

May 16 2013 at 4:43 PM Report abuse -1 rate up rate down Reply
dsusound

invest in CYBORNETICS, its the truth.

May 16 2013 at 3:53 PM Report abuse rate up rate down Reply
wboozer@mail.com

Don't worry, Warren, after 2008 it is doubtful that anyone pays attention to S & P ratings!

May 16 2013 at 3:23 PM Report abuse rate up rate down Reply