A.M. Best Assigns Ratings to Fairfax Financial Holdings Limited?s Shelf Registration

Fri. September 04, 2009; Posted: 03:26 PM

OLDWICK, N.J., Sep 04, 2009 (A. M. Best via COMTEX) -- FFH | Quote | Chart | News | PowerRating -- A.M. Best Co. has assigned indicative ratings of ?bbb? to senior unsecured debt, ?bbb-? to subordinated debt and ?bb+? to preferred stock, which may be issued under Fairfax Financial Holdings Limited?s (Fairfax) (Toronto, Canada) [NYSE: FFH; TSE: FFH] recently filed and approved shelf registration statement. The outlook assigned to the ratings is stable.

This shelf registration replaces Fairfax?s previous shelf registration, which was withdrawn simultaneously with the approval. The ratings for the previous shelf registration have been withdrawn. Fairfax?s issuer credit rating of ?bbb? and existing debt ratings remain unchanged, as do the financial strength and issuer credit ratings of its insurance operating subsidiaries.

Fairfax?s unadjusted debt-to-total capital ratio is calculated at 26.8% following the recent issuance of CAD 400 million in senior unsecured debt, an increase from 23.7% at June 30, 2009 (U.S. GAAP). This calculation includes the debt of Odyssey Re Holdings Corp., a majority-owned public company capable of servicing its debt. The financial leverage and coverage ratios remain well within A.M. Best?s guidelines for its debt ratings and are expected to remain so over the near term.

A.M. Best notes that cash, short-term investments and marketable securities held at the holding company level totaled $880.1 million at June 30, 2009, affording Fairfax additional financial flexibility.

For Best?s Credit Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at http://www.ambest.com/ratings/methodology.

For full details on Fairfax Financial Holdings (FFH) click here. Fairfax Financial Holdings (FFH) has Short Term PowerRatings of 5. Details on Fairfax Financial Holdings (FFH) Short Term PowerRatings is available at This Link.

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