NEW YORK (AP) — Standard & Poor's Ratings Services cut a major rating for Warren Buffett's Berkshire Hathaway.
The ratings agency dropped its investment-grade counterparty credit rating for the Omaha-based company by one notch to "AA" from "AA+."
S&P says the move better reflects Berkshire Hathaway Inc.'s dependence on its core insurance operations for most of its dividend income.
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Significantly, it noted that "management succession at BRK is also an offsetting factor." Berkshire has picked a successor for the 82-year-old Buffett, but has not made the name of the person public.
S&P says the investment firm's non-insurance businesses generate most of its operating income, but aside from the insurance subsidiaries only Burlington Northern Santa Fe has provided a significant part of its total dividends. The outlook on all of the ratings is negative.
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