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Press release from Business Wire

A.M. Best Assigns Ratings to Fairfax Financial Holdings Ltd.'s New Shelf Registration

Tuesday, January 08, 2013

A.M. Best Assigns Ratings to Fairfax Financial Holdings Ltd.'s New Shelf Registration16:28 EST Tuesday, January 08, 2013 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 Consequently, the indicative ratings for the previous shelf registration have been withdrawn.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 financial 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 RESERVED.A.M. Best Co.Darian Ryan, CPA, 908-439-2200, ext. 5449Senior Financial Analystdarian.ryan@ambest.comorMichael Lagomarsino, CFA, 908-439-2200, ext. 5810Assistant Vice Presidentmichael.lagomarsino@ambest.comorRachelle Morrow, 908-439-2200, ext. 5378Senior Manager, PublicRelationsrachelle.morrow@ambest.comorJim Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.com