NEW YORK (Reuters) - Moody's Investors Service yesterday cut its credit ratings on Berkshire Hathaway Inc from the top Aaa, saying the recession and investment losses at its insurance operations has reduced their ability to support Berkshire's funding needs.

Moody's cut Berkshire to Aa2, the third highest investment grade, and cut its ratings on Berkshire's reinsurance subsidiary National Indemnity Co, and its bond insurance arm Berkshire Hathaway Assurance Corp, to Aa1, the second highest investment grade.

The outlook for all the ratings is stable, indicating an additional rating change is not anticipated over the next 12-to-18 months.

Falling stock prices have reduced the value of National Indemnity's investment portfolio, in turn weakening its capital cushion relative to its insurance and investment exposures, Moody's said in a statement.