On Oct. 25, 2007, Standard&Poor's Ratings Services revised its outlook on Fairfax Financial Holdings Ltd. (FFH), FFH's operating insurance companies (collectively, Fairfax), and Crum&Forster Holdings Corp.(Crum&Forster) to stable from negative. At the same time, Standard&Poor's affirmed its 'BB' counterparty credit ratings on FFH and Crum&Forster and its 'BBB' counterparty credit and financial strength ratings on Fairfax. The stable outlook is based on the view that FFH's earnings in 2007 and 2008 will remain consistent with the rating, and may improve prospectively. The stable outlook is further supported by a good competitive position. FFH is expected to improve within the areas of governance, accounting control, and ERM. Since July 2006, FFH
