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A.M. Best Assigns Issue Credit Rating to Fairfax Financial Holdings Limited’s Forthcoming Senior Unsecured Notes

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A.M. Best Assigns Issue Credit Rating to Fairfax Financial Holdings Limited’s Forthcoming Senior Unsecured Notes

A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb” to Fairfax Financial Holdings Limited’s (Fairfax) (Toronto, Canada) [TSX:FFH and FFH.U] recently announced CAD 450 million in aggregate principal amount of senior unsecured notes due 2026. The senior unsecured notes will be obligations of Fairfax and pay an annual fixed interest rate of 4.70%. The outlook assigned to the Credit Rating (rating) is stable.

Following the senior notes issue, financial leverage and coverage measures at Fairfax are supportive of the assigned ratings. Fairfax intends to use the net proceeds of the offering to refinance or repay outstanding debt or other corporate obligations of Fairfax and its subsidiaries and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax’s previously issued senior unsecured notes.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

A.M. Best
Darian Ryan, +1 908-439-2200, ext. 5449
Senior Financial Analyst
darian.ryan@ambest.com
or
Jennifer Marshall, +1 908-439-2200, ext. 5327
Director
jennifer.marshall@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

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