1. AM Best assigned a 'a-' credit rating to Fairfax's new notes. 2. Fairfax issued CAD 700 million in unsecured notes for refinancing and acquisitions. 3. The outlook on these credit ratings is stable, indicating confidence in Fairfax.
The stable rating and funding for growth indicate financial health. Historically, similar ratings have positively influenced stock prices.
The credit rating impacts investor confidence, crucial for financing. Unsecured notes issuance relates directly to Fairfax's financial strategy.
The immediate use of funds for refinancing can improve liquidity and operational efficiency, impacting stock price quickly.
AM Best has assigned a Long-Term Issue Credit Rating of "a-" (Excellent) to the recently issued CAD 300 million, 5.1% senior unsecured notes, due August 2055, and CAD 400 million, 4.45% senior unsecured notes, due August 2035, of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada) (TSX:FFH). The outlook assigned to these Credit Ratings (rating) is stable.
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 the net proceeds of the offering to refinance, repay or redeem outstanding debt, equity or other corporate obligations of Fairfax and its subsidiaries, to pursue potential acquisition or investment opportunities (which may include acquisitions of minority interests in 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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Guilherme Monteiro Simoes, CFA
Senior Financial Analyst
+1 908 882 2317
guy.simoes@ambest.com
Gregory Dickerson
Director
+1 908 882 1737
gregory.dickerson@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com