This is classic. After years spent gorging itself on fees from slapping paid-for “quadruple A” ratings on junk bond garbage, Moody’s (MCO) has decided now, in the Spring of 2009, to start downgrading stuff.
Not only have the horses already bolted the barn, the barn itself has burned down and is a pile of smoldering ashes.
Moody’s put the entire Municipal Bond universe on credit watch negative early this week. Wow, now you’re as sober as a judge?
But here is the ultimate move Moody’s is making in an effort to restore its credibility:
Warren Buffett’s Berkshire Hathaway and several subsidiaries were downgraded late Wednesday by Moody’s Investors Service, which cited hits to “key businesses” amid the recession.
For those not keeping score: Berkshire Hathaway owns 20% of Moody’s common stock. By Downgrading Daddy, Moody’s will have something to point to when the next round of congressional hearings into the practice of pay-for-play ratings agencies takes place (which better be soon).
This move takes the term disingenuous to a “whole nubba lebel”.
Full Story: Moody’s Downgrades Buffett (TSC)