Big day for Warren Buffett’s Berkshire Hathaway (BRK)
In addition to 3000 jobs being cut due to falling demand for materials, Berkshire Hathaway’s credit rating was just cut to AA+ by Standard & Poors.
Bloomberg: Berkshire and its subsidiaries employ about 222,000 people, the Omaha, Nebraska-based company said today in a regulatory filing. That’s 1.3 per cent less than the figure the company reported six weeks ago, and almost 10 per cent below the 246,083 disclosed in the company’s 2008 annual report.
And then there’s the credit rating debacle:
Warren Buffett’s Berkshire Hathaway Inc. was stripped of its last AAA credit rating by Standard & Poor’s after the billionaire investor agreed to buy railroad Burlington Northern Santa Fe Corp
Berkshire, which is taking on debt to fund the $26 billion takeover, was cut to AA+ from S&P’s highest grade, the ratings firm said today in a statement. The downgrade concludes a review that S&P announced on Nov. 4, the day after Berkshire disclosed the deal for Burlington Northern.
“The railroad acquisition will reduce what historically has been extremely strong capital adequacy and liquidity,” the ratings firm said.
The stock is off 2.8%.