DBRS Finalizes Provisional Rating on Fairfax (US) Inc. Senior Unsecured Notes of BBB, Stable Trend

DBRS has today finalized its provisional rating of BBB with a Stable trend on the $300 million issue of 4.875% Senior Unsecured Notes (guaranteed) due 2024 (the Senior Notes) of Fairfax (US) Inc., an indirect subsidiary of Fairfax Financial Holdings Limited (rated BBB with a Stable trend by DBRS).

DBRS assigned the Senior Notes a rating equal to the Senior Unsecured Debt of Fairfax Financial Holdings Limited due to the guarantee that Fairfax Financial Holdings Limited is providing to the Senior Notes issue of Fairfax (US) Inc. DBRS has not assigned an issuer rating to the legal entity Fairfax (US) Inc.

Following the review of documentation associated with the recent offering, DBRS has confirmed that the terms of the issuance are consistent with those reviewed at the time the provisional rating was assigned on August 6, 2014. For further details on the provisional rating, please see the DBRS press release from that date entitled “DBRS Assigns BBB Provisional Rating to Fairfax (US) Inc. Senior Unsecured Notes, Stable Trend.”

The Senior Notes will be used primarily to refinance existing indebtedness and for general corporate purposes.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are DBRS Criteria: Guarantees and Other Forms of Explicit Support, Rating Companies in the Canadian Property and Casualty Insurance Industry and Rating Holding Companies and Their Subsidiaries, which can be found on our website under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The sources of information used for this rating include company documents.