The economic outlook is having a tsunami affect on ratings, impacting even the largest, previously most stable insurers, and
Attributing the cut in ratings made earlier this month by Fitch Ratings to Berkshire to the notion that no financial-oriented holding company should be rated AAA because of significant market volatility, Berkshire took it on the chin again today with news that Standard & Poor may drop its AAA credit rating because values have fallen in its equity portfolio and capital has shrunk at the insurance operations.
According to the
Although S&P affirmed all of its ratings on Berkshire, including its AAA/A-1+ counterparty credit rating, the rating agencys outlook has creates an opening for even more volatility for Berkshire and the market.
Class A shares of Berkshire lost nearly a third of their value in 2008, and have fallen another 12% this year. They closed Tuesday at $88,500, down 1.7%, reports