Fairfax Financial Holdings Ltd.'s operating earnings outlook remains positive on investment income growth from investment portfolio repositioning. We are affirming our ratings on Fairfax and its rated core operating subsidiaries, including our 'BBB-' long-term issuer credit rating on Fairfax. The positive outlook is predicated on progressive improvement in fixed-charge coverage and in the company's capitalization that we expect will be redundant at the 'AA' confidence level by 2019 year-end. Fairfax's credit profile reflects the strength of the company's combined re/insurance businesses and strong capitalization, partially offset by inherent volatility from its property-catastrophe exposure, reserve volatility from its long-tail business, and investments strategy. On May 30, 2019, S&P Global Ratings affirmed its 'BBB-' long-term issuer credit rating on Fairfax Financial Holdings
