A.M. Best Assigns Issue Ratings to Fairfax Financial Holdings Limited’s New Shelf Registration and Preferred Shares

OLDWICK, N.J.--()--A.M. Best has assigned issue ratings of “bbb” to senior unsecured debt, “bbb-” to subordinated debt and “bb+” to preferred stock of the short-form base shelf prospectus filed on September 14, 2015 (Base Shelf Prospectus) of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada) (TSX:FFH). Concurrently, A.M. Best has assigned an issue rating of “bb+” to the CAD 64,176,200 floating rate cumulative preferred shares (Series H Shares). The outlook for all ratings is stable. Fairfax’s issuer credit rating of “bbb”, its existing issue ratings and the ratings of its operating insurance subsidiaries are unchanged.

The assigned ratings of securities, which may be issued under the CAD 5 billion shelf registration statement, are consistent with the current issue ratings of Fairfax’s outstanding securities. The new Base Shelf Prospectus replaces Fairfax’s previously existing CAD 2 billion short-form base shelf prospectus filed in December 2014, which Fairfax has withdrawn. Consequently, the issue ratings for the previous short-form base shelf prospectus have been withdrawn.

The Series H Shares are related to the Preferred Shares Series G - CAD 200 million cumulative five-year rate reset shares issued by Fairfax in July 2010 (Series G Shares), which were convertible at the option of the holder of Series G Shares by tendering conversion notices no later than September 15, 2015, into Series H Shares on a one-for-one basis (subject to applicable restrictions on conversion), effective as of September 30, 2015. The quarterly floating dividend on the Series H Shares will be paid at an annual rate, calculated for each quarter, of 2.56% over the annual yield on three-month Government of Canada treasury bills.

This press release relates to rating(s) 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 visit A.M. Best’s Ratings & Criteria Center.

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 © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Jacqalene Lentz
Senior Financial Analyst
(908) 439-2200, ext. 5762
jacqalene.lentz@ambest.com
or
Jennifer Marshall, CPCU, ARM
Assistant Vice President
(908) 439-2200, ext. 5327
jennifer.marshall@ambest.com
or
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best Company
Jacqalene Lentz
Senior Financial Analyst
(908) 439-2200, ext. 5762
jacqalene.lentz@ambest.com
or
Jennifer Marshall, CPCU, ARM
Assistant Vice President
(908) 439-2200, ext. 5327
jennifer.marshall@ambest.com
or
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com