Buffett's Berkshire Loses Top-Level Credit Rating From Moody's

Bloomberg:

Billionaire Warren Buffett's Berkshire Hathaway Inc. had its top-level Aaa credit rating cut by Moody's Investors Service because of the falling value of stock markets and the impact of the recession on profit.

The rating was cut two levels to Aa2 on "the severe decline in equity markets over the past year as well as the protracted economic recession," Bruce Ballentine, a Moody's analyst, said in a statement about Omaha, Nebraska-based Berkshire.

Read the whole story: Bloomberg

Comments

[jerrypl]

NOW THIS PICTURE SHOULD BE A PART OF THE HUFFINGTON POST CAPTION CONTEST!

"Now, is that check to Geithner in the mail or not. I just can't remember these days."

http://eye-on-washington.blogspot.com

[TJCole]

Maybe Warren Buffet should sue Alan Greenspan and Christopher Cox...for say $100 billion dollars give or take a billion or two..

That would be sweet...!

[Fabini]

Does Mr. Buffett have to subscribe to (not) Free Credit Report Dot Com?

On a serious note, do these rating agencies have any credibility? Anyone can say don't buy when the tide is going out.

[markm8128]

I am not surprised...
Even I outperformed Warren Buffet last year:
He lost $4.9 billion, and I only lost a few thousand $ :)

[liminal67]

How the mighty have fallen..; "it's only when the tide goes out that you learn who's been swimming naked"- Warren Buffet

http://pitchbendpost.blogspot.com/

[IhaveaDREAMwhitegirl]

The credit raters will soon be found out for their collusion in this financial grab-bag-o-greed.

[loki]

who decides Moodys credit score then?

[KCFreedom]

So Warren should just use cash from now on? (just like the rest of us?)

It's hard to take Moody's or S&P very seriously anymore after they rated those sub-prime mortgage securities as AAA.

Perhaps I should start a ratings business. I couldn't do any worse.

[schatsie]

Moody's is OWNED 20% by Buffett and he doesn't talk to anyone there and I bet he doesn't vote the shares either.... just let's the management seduce him with the high fees that are payoffs for the ratings....only downgraded from aaa to aa....Well I'm betting it should be down more....

[VivaZapata]

The stock market is beginning to look like a giant junk store, and the USA is the pawnbroker (except that we demand very little up front and ask for not much return). Any average person still addicted to this ugly shell game is someone I feel sorry for.

[sc300nc]

Buy low sell high still works. There is plenty of money to be made in the market, always will be.

[patianneb]

uh oh.

[TrooAmerican]

wow, the investment company run by possibly the greatest investor in the history of our nation is downgraded, but the grading agencies rated mortgage backed security packages Triple A loaded with fraud, and they knew what was in them too.
nice

[Freenation]

Bad news...

[AZterritory]

Feeling our pain a little bit, Warren?

[KillTheMessenger]

Not really. He is in it for the long term. It works for him.

:-)

[schatsie]

Are you kidding me, every piece of toilet paper that man uses is run thru Berkshire as a 'Business Expense"..... How do you think he pays for his corporate jet, pilots, gas, maintenance, and insurance? While you and I get to deduct NOTHING AT ALL.

[doogiedude]

Talk about hedging your exposure:

BRK-A down .04% today.

Moodys (MCO), 20% owned by Berkshire Hathaway, up 2.4% today.

Just Sayin

[drymartini1]

before long someone will create a synthetic security out of it, long one short the other. :)

[drymartini1]

bwaaaaaaaaaha!!

there are still 5 more AAA rated US companies. and all of them are going to stay that way
JNJ
MSFT
PFE
XOM
ADP

ADP might drop out some day in the future if things go bad enough. same with PFE after 2012 when lipitor goes offpatent and revenue drops off a cliff. btw, i was not surprised GE lost its AAA rating.

World will end though if XOM and JNJ ever loses its AAA rating.

there is saying amongst equity analysts. You know you have become a real analyst if you can make sense of these two companies. GE and citigroup. Both companies have so complex financial reports and structure its hard to have a clear understanding where profits are going and coming from.

[doogiedude]

"Both companies have so complex financial reports and structure its hard to have a clear understanding where profits are going and coming from"

Sounds like Enron.

[drymartini1]

thats simplification, i didnt mean to imply they were fraudulent!!

i meant its extremely complex. I am not in the industry. i just read the saying in multiple places.

[schatsie]

Bingo, I agree with you.. What happened to transparency in accounting principles?