Fairfax Financial 'BBB-' Rating Outlook Revised To Negative On Potential Capital Decline After Brit PLC Buy

Fairfax Financial Holdings Ltd. announced on Feb. 16 that it had reached an agreement to acquire Brit PLC for about $1.88 billion. We are affirming the issuer credit rating on Fairfax Financial Holdings Ltd. at 'BBB-' and the issuer credit and financial strength ratings of its core insurance affiliates at 'A-'. We are revising the outlook to negative from stable, considering the potentially significant reduction in the group's capital adequacy, as measured by our proprietary capital model. NEW YORK (Standard&Poor's) Feb. 18, 2015--Standard&Poor's Ratings Services today affirmed its 'BBB-' issuer credit rating on Fairfax Financial Holdings Ltd. and 'A-' issuer credit and financial strength ratings of its core insurance affiliates and revised its outlook on the

...+ Fairfax Financial Holdings Ltd. announced on Feb. 16 that it had reached an agreement to acquire Brit PLC for about $1.88 billion. + We are affirming the issuer credit rating on Fairfax Financial Holdings Ltd. at '###-' and the issuer credit and financial strength ratings of its core insurance affiliates at 'A-'. + We are revising the outlook to negative from stable, considering the potentially significant reduction in the group's capital adequacy, as measured by our proprietary capital model. NEW YORK (Standard & Poor's) Feb. 18, 2015--Standard & Poor's Ratings Services today affirmed its '###-' issuer credit rating on Fairfax Financial Holdings Ltd. and 'A-' issuer credit and financial strength ratings of its core insurance affiliates and revised its outlook on the ratings to negative from stable. "Fairfax's acquisition and consolidation of Brit PLC would add materially to the capital required to support the additional asset and liability risks being assumed," said Standard & Poor's...

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