Will Moody's Lower Its Rating On Its Investor Berkshire Hathaway?

Fitch has cut Berkshire Hathaway down one notch, and S&P lowered the company’s outlook, a prelude to a downgrade.

So, obvious question: Will the third firm in the trigopoly, Moody’s (MCO), play along?

It’s an interesting question, since Berkshire Hathaway is the largest outside shareholder of Moody’s, creating a potential conflict that’s been raised in the past. But it’s no longer such a theoretical question, now that the other ratings agencies have decided that Warren Buffett and Berkshire are no longer AAA material.

Now Moody’s looks like the black sheep. The longer they hold off, the more questions will be raised about the conflict of interest.

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