NEW YORK--(BUSINESS WIRE)--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.
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
Global Rating Criteria for Asset-Backed Commercial Paper
Counterparty Criteria for Structured Finance and Covered Bonds