OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to Fairfax Financial Holding Limited’s (Fairfax) (Toronto, Canada) 2.75% senior unsecured notes due March 29, 2028 (the notes), following the recently announced private offering of an additional EUR 150 million through a reopening of the issue. Fairfax currently has outstanding EUR 600 million aggregate principal amount of notes of this series (the original notes), bringing the total outstanding to EUR 750 million. The newly issued notes will have the same terms as the original notes, except for the issue date and the issue price, and will form part of the same series as the original notes, including with respect to interest payments. Ultimately, the notes will trade under the same ISIN and Common Code numbers as the original notes. The outlook of this Credit Rating (rating) is stable.
Following the senior unsecured notes issue, financial leverage and coverage measures remain supportive of the assigned rating. Fairfax intends to use the net proceeds of the offering to refinance and repay outstanding debt and for other corporate purposes. Fairfax’s Long-Term Issuer Credit Rating of “bbb,” its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.
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