Bulletin: Berkshire Hathaway Inc. And Subsidiaries Ratings Unaffected By Acquisition Of Minority Stake In Pilot Flying J

NEW YORK (S&P Global Ratings) Oct. 4, 2017--On Oct. 3, 2017, Berkshire Hathaway Inc. (NYSE:BRK) announced the acquisition of a significant minority equity stake of 38.6% in Pilot Flying J. Furthermore, under the terms of the agreement, BRK will increase its holdings to 80% in 2023. Management has indicated that the funds for the acquisition of the initial stake were sourced from BRK's insurance subsidiary, which will hold this investment. There was no incremental debt used to fund the transaction, and S&P Global Ratings doesn't expect this acquisition to have a material impact on pro forma leverage ratios and, consequently, on BRK's financial risk profile. Therefore, as a result of this specific transaction, the ratings on BRK and its subsidiaries

...NEW YORK (S&P Global Ratings) Oct. 4, 2017--On Oct. 3, 2017, Berkshire Hathaway Inc. (NYSE:BRK) announced the acquisition of a significant minority equity stake of 38.6% in Pilot Flying J. Furthermore, under the terms of the agreement, BRK will increase its holdings to 80% in 2023. Management has indicated that the funds for the acquisition of the initial stake were sourced from BRK's insurance subsidiary, which will hold this investment. There was no incremental debt used to fund the transaction, and S&P Global Ratings doesn't expect this acquisition to have a material impact on pro forma leverage ratios and, consequently, on BRK's financial risk profile. Therefore, as a result of this specific transaction, the ratings on BRK and its subsidiaries are unaffected. We continue to monitor the ratings to assess any strain from losses from recent large catastrophic events or from broader capital management strategy and financial policy, given the company's highly acquisitive nature, that could...

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