The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Fairfax Financial Holdings chairman and CEO Prem Watsa addresses an annual meeting. Fairfax will buy a further $250-million (U.S.) worth of BlackBerry convertible debentures.
Fairfax Financial Holdings chairman and CEO Prem Watsa addresses an annual meeting. Fairfax will buy a further $250-million (U.S.) worth of BlackBerry convertible debentures.
(Aaron Harris/REUTERS)

Fairfax gets thumbs-down from Moody’s for latest BlackBerry cash injection

BlackBerry Ltd.’s sunnier financial prospects – at least for the time being – may have won favour with investors, but credit ratings agency Moody’s Investors Service is tut-tutting the company’s biggest shareholder for its part in the smartphone maker’s improved situation.

Last week, Fairfax Financial Holdings Ltd said it would buy an extra $250 million (U.S.) worth of BlackBerry convertible debentures, exercising an option on the refinancing from two months ago. The additional proceeds will double its original investment and increase BlackBerry’s gross proceeds from the financing to $1.25-billion. The refinancing was announced as Fairfax pulled its bid to take over the company last November.