Fairfax Financial notes receive A minus rating from AM

Executive Summary

• AM Best assigned a long-term issue credit rating of A- (excellent) with a stable outlook to Fairfax Financial Holdings Ltd.'s newly issued $400-million senior unsecured notes due February 2036.
• AM Best confirmed that the existing A- (excellent) rating on the $300-million senior unsecured notes due August 2055 remains unchanged, despite the addition of new notes to the same series.
• Fairfax has issued an additional $250-million in senior unsecured notes, bringing the total issuance for this series to $550-million.

Key Details

• New Issuance Details:
  • Issuer: Fairfax Financial Holdings Ltd.
  • Instrument: Senior Unsecured Notes
  • Principal Amount: $400 million
  • Coupon Rate: 4.4%
  • Maturity: February 2036
  • Rating Assigned: Long-term Issue Credit Rating (IR) of A- (excellent)
  • Outlook: Stable
• Existing Notes Status:
  • Principal Amount: $300 million
  • Coupon Rate: 5.1%
  • Maturity: August 2055
  • Original Issue Date: August 2025
  • Rating Status: Unchanged at A- (excellent) with a stable outlook.
• Total Series Size:
  • The total principal amount of senior unsecured notes in this series is now $550 million ($400 million new + $150 million additional/remaining from the original $300 million tranche, or potentially a consolidation of tranches totaling $550 million as stated).
• Use of Proceeds:
  • Refinancing, repaying, or redeeming outstanding debt, equity, or other corporate obligations.
  • Pursuing potential acquisition or investment opportunities (including minority interests in subsidiaries).
  • General corporate purposes.
• Other Ratings:
  • The long-term issuer credit rating of Fairfax, ratings of operating subsidiaries, and all other debt issuances remain unchanged.

Notable Quotes

• None provided in the text.