OLDWICK, NJ–(BUSINESS THREAD)–AM Best has assigned a long-term issuance credit rating (IR long-term) of “bbb” (Good) to the recently announced $750 million, 5.625% senior unsecured notes, due on August 16, 2032, from Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada). The outlook assigned to the credit rating is positive.
Fairfax intends to use substantially all of the net proceeds from this offering to purchase a portion of the non-controlling interest in Allied World Assurance Company Holdings, Ltd, and to use the remainder for general corporate purposes.
Following the completion of the transaction discussed above, Fairfax’s financial leverage measures are expected to be slightly elevated compared to year-end 2021. However, after accounting for the expected proceeds from the sale of the business of Crum & Forster Insurance Group pets and the underwriting earnings of the rest. of 2022, leverage ratios are expected to decline in line with the end of the previous year. Fairfax’s long-term issuer credit rating of ‘bbb’ (Good), its long-term IRs and the ratings of its operating insurance subsidiaries remain unchanged.
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