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Warren Buffett says S&P got it wrong

U.S. billionaire Warren Buffett not only thinks that Standard & Poor's shouldn't have downgraded the country's credit rating from AAA to AA+ — he thinks it should have been raised to "quadruple A."

Warren buffet markets 8 7 2011Enlarge
President Barack Obama presents Berkshire Hathaway chairman Warren Buffett with the 2010 Medal of Freedom at the White House Feb. 15, 2011. The medal is the highest honor awarded to U.S. civilians. (Alex Wong/AFP/Getty Images)

U.S. billionaire Warren Buffett not only thinks that Standard & Poor's shouldn't have downgraded the country's credit rating from AAA to AA+ — he thinks it should have been raised to "quadruple A."

The Berkshire Hathaway chairman, 80, also tried to restore confidence in the markets after last week's dramatic Wall Street sell-off, telling Bloomberg Television: "Financial markets create their own dynamics, but I don't think we're facing a double dip recession."

The Dow Jones Industrial Average plunged more than 4 percent Thursday, as the U.S. stock market slumped over investor fears of the debt crisis in Europe and a weakening economic outlook in the United States.

(GlobalPost reports: Markets plunges, U.S. stocks fall over global economy fears

Markets made a shaky recover Friday, but are expected to open heavily down on Monday after the S&P downgrade.

(GlobalPost reports: World markets braced for flight)

Buffett, 80, meantime, said Friday that that the S&P decision "doesn't make sense" and that his Omaha, Nebraska-based company would hold onto its sizeable number of U.S. Treasury bills.

"In Omaha, the U.S. is still triple-A. In fact, if there were a quadruple-A rating, I'd give the U.S. that," he told Fox Business News.

While Buffett told Bloomberg that he doesn’t rely on the views of ratings firms when buying and selling securities, Berkshire is the biggest shareholder of Moody’s Corp. The U.S. maintains the top credit rating at both Moody’s Investors Service and Fitch Ratings. 

http://www.globalpost.com/dispatch/news/regions/americas/united-states/110807/warren-buffett-berkshire-hathaway-S%2526P-economy-rating-downgrade-dollar