S&P rates Berkshire notes AAA

Standard & Poor's said it assigned an AAA rating on Berkshire Hathaway Finance Corp.'s senior unsecured notes due April 15, 2012.

"The rating on the new issue is based on the ratings on Berkshire Hathaway Inc. [AAA/negative/A-1+], BHFC's ultimate parent, reflecting BRK's extremely strong competitive position, experienced and focused management team, very strong insurance and reinsurance capitalization, and extremely strong financial flexibility," S&P analyst John Iten said in a statement.

"Weaknesses to the rating include exposure to severe natural catastrophe losses, though these exposures are declining; high common stock exposure; and the significant amount of long-term claims payments assumed through retroactive reinsurance covers by National Indemnity Co., a BRK subsidiary."

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