Industrials

Why S&P Now Favors Berkshire Hathaway as a Conglomerate Rather Than an Insurance Giant

Jon C. Ogg

Published: February 19, 2016 12:15 pm

Last Updated: January 13, 2020 12:58 pm

Standard & Poor’s has announced that Berkshire Hathaway Inc. (NYSE: BRK-A) is now officially off of its CreditWatch Negative list. Not only have Warren Buffett’s ratings been affirmed, but the credit ratings agency said it is now analyzing Berkshire Hathaway as a corporate conglomerate under its methodology rather than as an insurance holding company.

S&P noted specifically that the Precision Castparts acquisition is a neutral to the rating on Berkshire Hathaway. S&P has now affirmed its AA/A-1+ local currency rating and for its foreign currency rating.

As noted, Berkshire Hathaway’s top stock holdings have been under lots of change as well. Buffett now has six top stocks rather than just four, and he even invested into a former master limited partnership in the oil and gas infrastructure sector.

S&P’s placed Berkshire Hathaway’s ratings on CreditWatch Negative back on August 11, 2015. The outlook is now listed as stable.

24/7 Wall St.
Merrill Lynch Very Careful on MLPs Now: 4 for Energy Investors to Buy Now