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. On Feb. 18, 2015, Standard&Poor's Ratings Services 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 ratings to negative from
