Buffett "The U.S. Deserves a AAAA Rating." (NYSE: BRK.A), SPY Reports Hotstockmarketalerts.com

Legendary investor Warren Buffett known as the oracle of Omaha for his ability to predict stock market prices said the S&P erred in its decision to downgrade the U.S. credit rating.

Buffett said "U.S. merits a "quadruple A" rating." Buffett attributes the decline to the S&P reacting to the current stock market decline. Buffett continued "Financial markets create their own dynamics, but I don't think we're facing a double dip recession," said Buffett, chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. "Clearly what stock markets do have is an effect on confidence, and this selloff can create a lack of confidence."

Buffett 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.