Moody’s: Berkshire notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to senior unsecured notes issued by Berkshire Hathaway Inc. and Berkshire Hathaway Finance Corp.

Berkshire is issuing $750 million of two-year notes, including a $500 million fixed-rate issue and $250 million floating-rate issue.

Berkshire Hathaway Finance is issuing $1.25 billion of three-year notes with $1 billion fixed-rate issue and $250 million floating-rate issue, which are guaranteed by Berkshire.

The proceeds will be to repay $750 million of notes and $1 billion of notes, both due in August 2016.

The outlook is stable.

The ratings reflect the company’s strong market presence in its principal reinsurance operations, diversification of its earnings from both regulated and non-regulated businesses and its sound balance sheet, Moody’s said.

The ratings also consider the conservative operating and financial principles of the company’s current management team, the agency said.

These strengths are tempered by potential earnings and capital volatility within the reinsurance operations related to large, concentrated stock investments and large individual underwriting transactions, Moody’s said.

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