Standard & Poor's Ratings Services has affirmed its ratings on Berkshire Hathaway while revising upward the outlook on all ratings to stable from negative, it announced Monday.
The agency affirmed Berkshire Hathaway's "AA/A-1+" counterparty credit and "AA+" insurance financial strength ratings. The outlook revision was based on improved capital adequacy, though S&P said it remains concerned with "the potential volatility" of Berkshire Hathaway's capital.
Its large investments in common and preferred stocks, as well as its "aggressive acquisition strategy," pose risks, but earnings stability offsets those concerns, S&P said.
It could lower Berkshire Hathaway's ratings as a result of increasing investment risk exposure, sustained equity market declines or the funding of a large acquisition. S&P said it did not expect to raise ratings in the short-term based on the sovereign rating cap.
— By CNBC.com staff