Author Topic: Fitch Takes Away Berkshire's AAA Rating!  (Read 7209 times)

oldye

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #10 on: March 12, 2009, 06:30:15 PM »
Do you remember the Fitch ratings in the Fairfax case a few years ago?

 two agencies have to downgrade before the official rating is changed

 Congress should subpeona every employee at Fitch so that when an investigation is launched they'll have plenty of perjury charges to doll out.  


Parsad

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #11 on: March 12, 2009, 06:31:21 PM »
What does this mean.

Does Berkshire has to post collateral/deposit money for any of the derivatives or puts it has written ?


Probably not.  Financing costs for businesses like Clayton Homes and Mid-American may be higher.  Although AM Best, Standard & Poors, DBRS will probably not do such a stupid thing and downgrade Berkshire, so I'm not sure exactly how much more in interest they would have to pay for any debt they issue.  Going from AAA to AA+ isn't going to be detrimental, but it does take away Buffett & Munger's ability to say they are AAA-rated by every rating agency.  I bet Munger has some choice words for Fitch...like Fitch-off!  Cheers!  
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Santayana

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #12 on: March 12, 2009, 06:40:21 PM »
I don't know.   I think the case could be made that nobody really deserves a AAA right now, and that could include the US govt. as well.   Whether or not you believe we are headed for a depression, one has to recognize that there is a great deal of uncertainty in the financial markets these days.   

How many AAAs are still out there? 

scottyjukebox

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #13 on: March 12, 2009, 07:33:46 PM »
Wow..gee thanks for the heads up Fitch.

Mungerville

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #14 on: March 12, 2009, 07:55:56 PM »
What a joke.  They must be retarded.  In what circumstance will Berkshire not be able to pay its debt as it comes due?

Fitch was in bed with the bad guys a few years ago.  We all saw it. 

So it looks like some of them are crooked and some of them are retarded.





oldye

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #15 on: March 12, 2009, 08:14:15 PM »
It used to be that AAA meant 0.02% chance of default.  Of course Berkshire and hell the U.S government aren't really AAA.  They have 0 chance of default, let me rephrase that, in the event of a default there would be no one around to rate them or care.   

Rabbitisrich

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #16 on: March 12, 2009, 08:30:19 PM »
The downgrade also recognizes that even the most senior obligations at the holding company level are deeply subordinated to policyholder obligations at the regulated insurance and reinsurance company subsidiaries. Fitch notes this point is not new, but rather reflects Fitch's view on appropriate weighting given to this risk in the current environment and at the current rating level.

Does anyone else have trouble understanding the last sentence? Is Fitch saying that their ratings mean different things at different times?

oec2000

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #17 on: March 12, 2009, 09:25:56 PM »
Look for the silver lining. We will know the bottom has been reached when Moody's and S&P also downgrade BRK. ;D

netnet

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #18 on: March 12, 2009, 10:02:59 PM »
Wow,

Let me get this straight.  These are the same guys (and gals) who rated the CDO and CDO squared paper AAA, the paper whose best use is in the financial outhouse.

scorpioncapital

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Re: Fitch Takes Away Berkshire's AAA Rating!
« Reply #19 on: March 12, 2009, 10:25:36 PM »
Let's see if every company is downgraded in a proportional fashion from AAA to AA, from AA to A, etc..what does it mean - nothing! AA is the new AAA!