Fairfax Financial Holdings Ltd.'s (Fairfax) competitive position is anchored by its large re/insurance operations that have a strong presence in their respective markets and benefit from diversified product lines and a broad geographic footprint. The company's underwriting operations are well positioned to benefit from re/insurance rate improvement but COVID-19 headwinds will be a drag on both investment and underwriting earnings, at least for 2020. We are now projecting a lower level of risk-adjusted capitalization for Fairfax than initially anticipated in view of first-quarter losses, lower earnings expectation, and its aggressive investment portfolio relative to that of peers. We are affirming our ratings on Fairfax and its operating subsidiaries. The stable outlook reflects our view that Fairfax will maintain a strong
