S&P rates Berkshire Hathaway notes AA

Standard & Poor’s said it assigned AA senior unsecured debt ratings to Berkshire Hathaway Inc.’s and Berkshire Hathaway Finance Corp.’s proposed notes issuances.

The agency said it expects Berkshire Hathaway to be the guarantor of the notes issued under its subsidiary, Berkshire Hathaway Finance.

S&P said it expects the company to use the majority of the proceeds from the issuances to refinance existing debt, including a $10 billion credit facility it took in early 2016 to help finance the acquisition of Precision Castparts Corp.

The agency said it doesn’t expect the group’s credit protection measures to change materially.

The ratings reflect a view that the group has a strong business risk profile, modest financial risk profile and highly diversified profile as a conglomerate operating in multiple business segments with relatively low correlation, S&P said.

The company continues to report solid profitability metrics, significant cash-flow generation and strong EBITDA margins during the next two years, the agency said.

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