Fitch Affirms Berkshire Hathaway s Ratings; Outlook Revised to Stable
http://www.fitchratings.com/
Excerpt:
14/12/2007 19:17:00 Business Wire Fitch Ratings has affirmed its Issuer Default Ratings (IDR) on Berkshire Hathaway, Inc.
(BRK), its ratings on BRK s senior unsecured notes, and its Insurer Financial Strength (IFS) ratings on BRK s insurance subsidiaries.
The Rating Outlook on BRK has been revised to Stable from Negative.
The Rating Outlook on BRK s insurance subsidiaries is Stable.
Fitch s ratings on BRK and its insurance subsidiaries continue to reflect the organization s very strong capitalization and liquidity, conservative operating strategies, and excellent competitive positioning in key insurance markets.
The ratings also reflect a material amount of earnings volatility due to the large portion of the company s earnings derived from (re)insurance subsidiaries.
The revision in BRK s Rating Outlook reflects Fitch s view, that while BRK continues to be exposed to very high key man risk that threatens the company s long-time financial and operating strategies, the duration over which this risk is likely to manifest itself is uncertain and may exceed the 12-24 month horizon typically covered by the agency s Rating Outlook