Buffett defends 'darn good' Moody's

Warren Buffett has defended Berkshire Hathaway's large stake in credit ratings company Moody's, believing it is still a "darn good business".

Speaking at the Berkshire Hathaway investor meeting, Buffett says ratings agencies made the same mistake which he, politicians, mortgage brokers and others did in overestimating the health of the housing market. But the 'Sage of Omaha' says the agencies, which also includes Standard & Poor's and Fitch, have low capital requirements and strong pricing power. However, Buffett has reduced his large stake in Moody's below 14% in recent times. "There is obviously a backlash against rating agencies," he says. "If they are not forced to change the whole structure around them in some drama...