S&P: Berkshire Hathaway unchanged

Standard & Poor's said its ratings on Berkshire Hathaway Inc. (AAA/stable/A-1+) and its two operating subsidiaries, National Indemnity Co. (NAAA/stable) and Berkshire Hathaway Assurance Corp. (BHAC, not rated), would not be affected by the company's announced intention to provide financial guaranty insurance through its 100%-owned operating subsidiary BHAC.

Because of significant contractual commitments including a contingent payment insurance policy and a financial enhancement letter from National Indemnity in support of BHAC, the agency said that National Indemnity's AAA rating is expected to be assigned on a transactions-only basis to contracts written by BHAC.

S&P said it will assess required capital for each deal written by BHAC, so as to monitor and measure this additional required capital charge within the consolidated National Indemnity capital adequacy model and existing National Indemnity rating expectations.

According to the agency, the rating on Berkshire Hathaway is based on its extremely strong competitive position, extremely strong insurance and reinsurance capitalization and extremely strong financial flexibility.

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