Insight and Intelligence on the London & International Insurance Markets

9 February 2012

Fitch cuts Berkshire Hathaway ratings on $16bn railroad deal

16 February 2010

Fitch has downgraded Berkshire Hathaway's insurance subsidiaries, as the Warren Buffett-backed conglomerate completed its $16bn mega-acquisition of railway operator Burlington Northern Santa Fe (BNSF).

The ratings agency reduced Berkshire Hathaway's insurer financial strength (IFS) to AA+ from AAA and its issuer default rating (IDR) by two notches from AA+ to AA-.

The move also comes just days after fellow rating agency Standard & Poor's (S&P) downgraded its AAA counterparty credit rating in response to the "very high risk" debt-backed acquisition...

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