“We now incorporate three notches of ratings uplift due to our view that the company would likely receive support from the rest of Berkshire’s group under most foreseeable circumstances,” S&P wrote. And S&P, in announcing the change last week, made clear that it is the expected backing of Berkshire Hathaway (NYSE: BRK.B) that led to the upgrade. That remains at BB+.īut it is the rating on the debt that is most important for investors. S&P also has what it calls a stand-alone credit profile (SACP) for Pilot. Most ratings changes tend to be one grade, though a company in sudden crisis might find its debt ratings see a plunge of several steps in one shot. That three-step move takes the Pilot debt rating past BBB- and BBB up to the BBB+ grade, an unusually strong move. BB+ is not considered investment-grade debt.īut with Berkshire Hathaway now owning 80% of the company, and the Haslam family owning the rest, S&P Ratings (NYSE: SPGI) took Pilot’s rating up three notches to BBB+ in one shot, taking it back into the investment-grade category. Pilot’s BB+ corporate rating was affirmed in mid-2021, though one debt issue was reduced at that time to a BB+ level. The acquisition of a majority stake in Pilot Travel Centers by Berkshire Hathaway has led to a significant increase in the company’s debt rating by S&P Global Ratings.
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