Warren Buffett's new municipal bond insurer has received its second AAA credit rating, just months after it was created in response to the stumbles of veteran insurers like Ambac and MBIA, two companies that are at risk of losing their own triple-As.
Today, Moody's gave its highest rating to Berkshire Hathaway Assurance Corporation. In a news release (free registration required), Moody's says, "BHAC's rating reflects its strong capital position and its high-quality insured portfolio of public finance credits, as well as the guaranty from (Berkshire subsidiary) Columbia (Insurance Company) and implicit support from Berkshire."
The release quotes analyst James Eck as saying, "BHAC has rapidly grown its insured portfolio of U.S. public finance credits during a period of great stress in the credit markets. The company's sound financial profile and its affiliation with Berkshire give it a meaningful presence in the financial guaranty insurance marketplace."