S&P downgrades Buffett's Berkshire Hathaway

Berkshire Hathaway (BRK), the insurer headed by billionaire Warren Buffett, has been downgraded by Standard & Poor's from AA+ to AA.

The ratings agency affirmed its AA+ counterparty credit and financial strength ratings on BRK's core operating insurance companies, but suggested the wider company relied too heavily on that business for income. "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 S&P credit analyst John Iten. S&P is continuing to maintain a negative outlook on all ratings at the firm, and said the group's capital adequacy could continue to deteriorate in the months ahead. However, the agency expects the...