Bloomberg reports tonight that Warren Buffet’s company Berkshire Hathaway gets a credit rating downgrade from Fitch mainly because of the concern for potential losses in investments made in derivatives and equity as well as the belief that “Berkshire’s record of outstanding long-term investment results and the company’s ability to identify and purchase attractive operating companies is intimately tied to Mr. Buffett.” In lieu of this, the performance of the company might be put to risk if Buffett becomes incapable of doing his job. Fitch, however, said, it has nothing to do with his age; he is 78. The rating agency cut the issuer default rating on Berkshire to AA+, and senior unsecured debt to AA. This news follows GE’s downgrade from S&P today to AA+.
Bloomberg’s complete report HERE.