Berkshire among insurers that may be lowered in S&P review

Warren Buffett’s Berkshire Hathaway Inc. is among firms that may be downgraded by Standard & Poor’s as the ratings company reviews insurers after stripping the U.S. government of its AAA rating.

“Our view of these companies’ fundamental credit characteristics has not changed,” S&P said in a statement today as it cut the outlook to “negative” on Omaha, Nebraska-based Berkshire. “Rather, the rating actions reflect the application of criteria and our view that the link between the ratings on these entities and the sovereign credit ratings on the U.S. could lead to a decline in the insurers’ financial strength.”

New York Life Insurance Co., the largest policyholder-owned life insurer in the U.S., was among five firms today stripped of AAA ratings and cut to AA+. Berkshire was among five other companies that had the outlook lowered on their AA+ grades.

“The 10 affected insurance groups operate in the U.S. and generally have significant holdings of U.S. Treasury and agency securities,” S&P said.

Buffett lost his AAA rating from S&P last year after agreeing to buy railroad Burlington Northern Santa Fe. He said Aug. 6 that the ratings firm erred in cutting the U.S. grade and that the country should have a “quadruple A” rating. Buffett didn’t immediately respond to a request for comment left with an assistant.