Credit rating agency Standard & Poor’s on Thursday cut its rating on Berkshire Hathaway Inc., the insurance and industrial conglomerate controlled by billionaire investor Warren Buffett, by one notch, citing the company’s reliance on its insurance operations for dividend income.
S&P cut the counterparty rating on Berkshire to “AA” from “AA+,” but the agency left Berkshire’s insurance units’ financial strength ratings intact at “AA+.”
The outlook on all ratings is negative, S&P said in a statement.
“The lower credit rating on BRK better reflects our view of BRK’s dependence on its core insurance operations for most of its dividend income,” said Standard & Poor’s credit analyst John Iten.
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