Fitch affirms Berkshire Hathaway

Fitch Ratings said it affirmed Berkshire Hathaway, Inc.'s issuer default rating at AAA.

The agency also affirmed Geico Corp.'s $150 million 7.4% senior notes due 2023 at AAA, General Re Corp.'s $150 million 9% senior notes due 2009 at AA+, Berkshire Hathaway Finance Corp.'s $8.9 billion of notes at AAA, XTRA Corp.'s $27 million of notes at AA-, XTRA Finance Corp.'s $400 million 5.15% notes due 2017 at AAA and the commercial paper programs of General Re and XTRA at F1+.

The outlook has been revised to stable from negative, reflecting the agency's view that while Berkshire Hathaway continues to be exposed to very high "key man" risk that threatens the company's long-time financial and operating strategies, the duration over which this risk is likely to manifest itself is uncertain and may exceed the 12 to 24 month horizon typically covered by the agency's outlook.

Fitch said its ratings on Berkshire Hathaway and its subsidiaries continue to reflect the organization's very strong capitalization and liquidity, conservative operating strategies and excellent competitive positioning in key insurance markets.

The ratings also reflect a material amount of earnings volatility due to the large portion of the company's earnings derived from reinsurance subsidiaries, the agency noted.

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