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

Tue Jan 8, 2013 4:28pm EST

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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been withdrawn.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. 5449
Senior Financial Analyst
darian.ryan@ambest.com
or
Michael Lagomarsino, CFA, 908-439-2200, ext. 5810
Assistant Vice President
michael.lagomarsino@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, PublicRelations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Copyright Business Wire 2013
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