Moody's cuts rating on Buffett's Berkshire

Moody's Investors Service cut its credit ratings on Berkshire Hathaway Inc from 'Aaa', the top rating, saying the recession and investment losses at insurance operations of investor Warren Buffett's (above) holding company reduced its ability to support funding needs.

Wednesday's cut to Berkshire's rating means Moody's no longer has an 'Aaa' rating on any company with significant financial-services operations.

Moody's cut the ratings on Omaha, Nebraska-based Berkshire to 'Aa2', the third-highest investment grade, and cut to 'Aa1', the second-highest, its ratings on Berkshire's reinsurance subsidiary National Indemnity Co and bond insurance arm Berkshire Hathaway Assurance Corp.