AM Best Affirms Issue Credit Rating of Fairfax Financial Holdings Limited’s Reopened Senior Unsecured Notes

AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “bbb+” (Good) of the 6% senior unsecured notes, due December 2033, of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada). The outlook of this Credit Rating (rating) is stable.

The rating applies to the recently issued $200 million 6% senior unsecured notes, due 2033, and its existing $400 million 6% senior unsecured notes, due 2033, issued Dec. 7, 2023. The additional notes offered constitute a further issuance of, and are fungible with, the existing notes. The $200 million of additional notes were priced at 100.998%, plus accrued interest from Dec. 7, 2023, with a yield to maturity of 5.863%. These additional notes offer terms identical to the existing notes issued on Dec. 7, 2023, with the exception of the issue date and offering price.

The Long-Term Issuer Credit Rating of Fairfax, as well as the ratings of its operating subsidiaries and all other debt issuances are unchanged. Fairfax intends to use substantially all of the net proceeds of the offering to repay outstanding indebtedness with upcoming maturities and use any remainder for repayment of other outstanding indebtedness of Fairfax or its subsidiaries and for general corporate purposes.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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