|[January 08, 2013]
A.M. Best Assigns Ratings to Fairfax Financial Holdings Ltd.'s New Shelf Registration
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned indicative ratings of "bbb" on senior
unsecured debt, 'bbb-" on subordinated debt and "bb+" on preferred
shares to the recently filed universal short form base shelf prospectus
of Fairfax Financial Holdings Limited (Fairfax) (Toronto) [TSX:
FFH]. The outlook assigned to these ratings is stable. The new shelf
registration replaces Fairfax's previous shelf, which has expired.
Consequently, the indicative ratings for the previous shelf registration
have been withdrawn.
All existing ratings for Fairfax and its subsidiaries are unchanged.
At September 30, 2012, Fairfax's adjusted debt-to-total capital ratio
was calculated at approximately 30%. In the mid-term, Fairfax's
inancial leverage and coverage ratios are expected to remain within
A.M. Best's guidelines for its current ratings. These calculations
include the debt of wholly owned subsidiaries, which are capable of
servicing their own debt. In addition, Fairfax had cash and investments
of approximately $1 billion at September 30, 2012.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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