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

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

Business Wire

OLDWICK, N.J. -- January 8, 2013

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previous shelf registration have been withdrawn.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,

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

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
Michael Lagomarsino, CFA, 908-439-2200, ext. 5810
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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