Research Update: Precision Castparts Corp. Ratings Affirmed On Strong Credit Metrics; Outlook Stable

Precision Castparts Corp.'s credit metrics have improved recently due to an absence of acquisitions resulting in growing cash balances and therefore lower net debt. However, our issuer credit rating on the company is largely dependent on its group position as being strategically important to Berkshire Hathaway Inc. Therefore, we are affirming our 'AA-' issuer and unsecured debt ratings on Precision Castparts. The stable outlook reflects our expectations that credit metrics will remain appropriate for the rating, even with slightly lower earnings in 2020 due to the impact of the 737 MAX production suspension and possible acquisitions. The stable outlook reflects S&P Global Ratings' expectations that Precision Castparts Corp.'s credit ratios will remain appropriate for the rating in 2020, with FFO

...- Precision Castparts Corp.'s credit metrics have improved recently due to an absence of acquisitions resulting in growing cash balances and therefore lower net debt. - However, our issuer credit rating on the company is largely dependent on its group position as being strategically important to Berkshire Hathaway Inc. - Therefore, we are affirming our '##-' issuer and unsecured debt ratings on Precision Castparts. - The stable outlook reflects our expectations that credit metrics will remain appropriate for the rating, even with slightly lower earnings in 2020 due to the impact of the 737 MAX production suspension and possible acquisitions....

Research Update