OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to the recently announced USD 600 million, 3.375% senior unsecured notes, due March 2031, of Fairfax Financial Holdings Limited’s (Fairfax) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is stable.
Fairfax intends to use the net proceeds of the offering to repay a portion of debt under its unsecured revolving credit facility and other outstanding debt of Fairfax and its subsidiaries. This may include the redemption or repurchase of certain previously issued senior unsecured notes or other debt securities of Fairfax and its subsidiaries.
Following completion of the transactions discussed above, Fairfax’s financial leverage measures are expected to remain supportive of the assigned rating, with ongoing coverage ratios slightly improving. 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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