S&P removes Berkshire Hathaway from CreditWatch, calls outlook 'stable'
S&P Global Ratings said it affirmed its 'AA' long-term counterparty credit and senior unsecured debt ratings on Berkshire Hathaway Inc. and affirmed its ratings on intermediate holding companies and finance companies GEICO Corp., General Re Corp., and General Re Financial Products Corp. Concurrently, S&P removed all these ratings from CreditWatch with negative implications, where they'd initially been placed on July 7. The outlook is stable. The CreditWatch removal follows BRK's announcement that its agreement to acquire Energy Future Holdings and its interest in Oncor has been terminated by EFH. S&P said: "We had placed the ratings on CreditWatch negative following the Oncor acquisition announcement to reflect the uncertainty around the funding of the acquisition and how it could affect leverage metrics at the parent-company level. With the transaction now terminated, we expect the company's current leverage to remain within our original expectations. Our adjusted leverage for BRK, including subsidiary debt, was 1.9x as of second-quarter 2017, consistent with year-end 2016 levels and commensurate with our 'modest' financial profile assessment." BRK.A BRK.B