Fitch Affirms Welsh Road LLC's Rating

NEW YORK--()--Fitch Ratings affirms the rating for Welsh Road Funding LLC (Welsh Road) as follows:

--$2,500,000,000 commercial paper (CP) notes at 'F1+sf'.

KEY RATING DRIVERS

The rating of the notes is based upon the rating of the guarantor of the surety, Berkshire Hathaway Inc. (BHI; Issuer Default Rating [IDR] 'AA-' with a Stable Outlook). Fitch considers BHI to be an eligible direct-support counterparty based on the strength of its long-term rating and Stable Outlook. A long-term rating of 'AA-' correlates to a short-term rating of 'F1+', but lower long-term ratings have a correlation that may overlap multiple short-term ratings.

The notes are supported by a $2.5 billion unconditional and irrevocable surety issued by Columbia Insurance Company (Insurer Financial Strength [IFS] rating of 'AA+' with a Stable Outlook), which is further enhanced by a corporate guaranty made by BHI.

RATING SENSITIVITIES

The rating remains sensitive to the rating migration of BHI. A downgrade of more than one rating notch to BHI would likely result in a downgrade to the notes. Such a determination would be decided by a ratings committee, taking into consideration input provided by Fitch's Corporates Group regarding the short-term financial position of BHI.

Additional information is available at 'www.fitchratings.com'.

The information used to assess this rating was sourced from the swap counterparty and the public domain.

Applicable Criteria & Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Global Rating Criteria for Asset-Backed Commercial Paper' (Nov. 7, 2013);

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Global Rating Criteria for Asset-Backed Commercial Paper

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=721566

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=885874

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Contacts

Fitch Ratings
Primary Analyst
Shashi Srikantan, +1 212-908-0393
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Alina Pak, +1 312-368-3184
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Shashi Srikantan, +1 212-908-0393
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Alina Pak, +1 312-368-3184
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com