Moody's rates Berkshire notes Aaa

Moody's Investors Service said it assigned Aaa ratings to $1.5 billion of three-year floating-rate notes and $500 million of five-year fixed-rate notes being issued by Berkshire Hathaway Finance Corp., guaranteed by Berkshire Hathaway Inc. (long-term issuer rating of Aaa, short-term issuer rating of P-1) and offered under Rule 144A.

The outlook is stable.

Proceeds are expected to provide financing to Vanderbilt Mortgage and Finance, Inc., a wholly owned subsidiary of Clayton Homes, Inc., which is an indirect wholly owned subsidiary of Berkshire.

According to Moody's, ratings reflect the group's strong market presence in its principal re-insurance operations, the diversification of its earnings in both regulated and non-regulated businesses and its exceptionally strong balance sheet.

Ratings also reflect the conservative operating and financial principles of the current management team, the agency said.

Strengths are tempered by concerns over management succession and by the company's exposure to earnings and capital volatility related to large individual underwriting and investment positions, Moody's said.

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