AM Best announces issue credit rating for Fairfax

AM Best announces issue credit rating for Fairfax | Insurance Business Canada

Insurance News

AM Best announces issue credit rating for Fairfax

Rating relates to recently issued senior unsecured notes

Insurance News

By
Terry Gangcuangco

AM Best has awarded a long-term issue credit rating of “bbb+” (good) to Fairfax Financial Holdings for its newly issued US$600 million, 6.1% senior unsecured notes, maturing in March 2055. The outlook for the credit rating is positive.

Fairfax’s long-term issuer credit rating, along with the ratings of its subsidiaries and all other debt issues, remain the same.

“The company intends to use the net proceeds of this offering to redeem all of the outstanding US$500 million aggregate principal amount of Allied World Assurance Company Holdings I, Ltd.’s outstanding 4.35% senior unsecured notes due 2025 and the remainder for general corporate purposes,” AM Best said.

In its own announcement, Fairfax said it had delivered a notice of redemption to Allied World’s trustee in respect of the full redemption of the Allied World notes.

“The Allied World notes will be redeemed on July 24, 2024 at a redemption price based on the value of the remaining scheduled payments on the Allied World notes to be calculated on July 19, 2024, plus accrued and unpaid interest, if any,” Fairfax said.

“There is US$500 million aggregate principal amount of Allied World notes currently outstanding.”

In addition to the US$600 million in aggregate principal amount of 6.1% senior notes due 2055, Fairfax has also completed an additional US$150 million of its 6.000% senior notes due 2033.

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