Berkshire Hathaway acquired Precision Castparts Corp. on Jan. 29, 2016. We are raising our corporate credit rating on the aerospace supplier to 'AA-' based on expectations of a more moderate financial policy and our assessment that the company is strategically important to Berkshire. The stable outlook reflects our expectation that credit ratios will remain appropriate for the rating in 2016 despite pressure on revenues and earnings because of lower demand from the oil and gas market. On Feb. 19, 2016, Standard&Poor's Ratings Services raised its ratings on Precision Castparts Corp., including raising the corporate credit rating to 'AA-/A-1+' from 'A-/A-1'. We removed the long-term ratings from CreditWatch, where we placed them with positive implications on Aug. 11, 2015.
