Fairfax Financial Holdings Ltd. will likely maintain very strong capital adequacy per our capital model. We are revising our outlook on Fairfax to stable from negative and affirming our ratings on Fairfax and its core insurance affiliates. The stable outlook reflects our view that the pending acquisition of Brit PLC will not have a significant adverse impact on the group's capital adequacy. On May 1, 2015, Standard&Poor's Ratings Services revised its outlook on Fairfax Financial Holdings Ltd. to stable from negative. At the same time, we affirmed our 'BBB-' long-term counterparty credit rating on Fairfax and our 'A-' long-term counterparty credit and financial strength ratings on its core insurance affiliates. Our analysis of Fairfax's acquisition and consolidation of
