Updated from Wednesday, April 8Warren Buffett's Berkshire Hathaway ( BRK-A) and several subsidiaries were downgraded late Wednesday by Moody's Investors Service, which cited hits to "key businesses" amid the recession. Moody's downgraded Omaha, Neb.-based Berkshire's long-term issuer rating to Aa2 from Aaa, as well as the insurance financial strength rating of National Indemnity Co. and other major insurance subsidiaries to Aa1 from Aaa.The rating agency said the outlook for all the entities is stable. Falling stock prices have hit the companies' investment portfolios and their capital cushions, said Bruce Ballentine, Moody's lead analyst for Berkshire. Berkshire's portfolio includes pressured financial companies like American Express ( AXP), Wells Fargo ( WFC) and US Bancorp ( USB), consumer staples makers like Procter & Gamble ( PG), Coca-Cola ( KO) and Kraft ( KFT), and Moody's Investors Service ( MCO) itself. "These extraordinary market pressures have reduced the excess cushion available from National Indemnity and the other affected operations to support potential funding needs of the parent company," Ballentine said in a press release. Moody's action came almost a month after Fitch Ratings cut Berkshire's triple-A issuer default rating, but affirmed its triple-A insurer financial strength ratings on the company's insurance and reinsurance subsidiaries, with a negative outlook. Standard & Poor's two weeks ago revised its rating outlook for Berkshire, to negative from stable. National Indemnity's regulatory capital fell by 22% during 2008 to $27.6 billion as of year-end and by a significant additional amount through early March, Moody's said. The rating agency said National Indemnity still has a robust capital base, but remained exposed to further stock market downturns.