AAA-Credit Ratings Are Dying All Over The Place

warren buffett cnbc

While the loss of Warren Buffett’s treasured AAA credit rating for Berkshire Hathaway may be shocking to many, it’s actually just the latest development in a long-term trend towards weaker corporate credit.

That’s because according to Standard & Poor’s, while there were 60 non-financial U.S. companies with AAA-ratings back in the early-1980s, there are only four now — Automatic Data Processing, Exxon, Johnson & Johnson, and Microsoft. Only 18 financial companies have AAA-credit.

Developed sovereign nations appear to be following a similar trend as well, as shown by this chart from Moody’s:

Chart

All nations here save Switzerland are diving towards the purple, non-AAA, zone. The death of AAA-ratings says much about how the world has become a far more leveraged place than it was before.

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