The counterparty credit rating on Fairfax Financial Holdings Ltd. (FFH) is based on the company's strong competitive position, strong financial profile and financial flexibility, and very strong investment team. Partially offsetting these positive factors are the company's exposure to cyclical industry conditions and natural catastrophes, as well as potential operational risks related to its decentralized business model and a sizable, though decreasing, run-off reserve position. FFH's strong and competitive market position is based on its sizable geographic footprint and sector diversification. Its three principal operating units are majority-owned Northbridge Financial, wholly owned Crum&Forster, and majority-owned Odyssey Re. Northbridge Financial's units collectively are Canada's leading commercial insurance provider, Crum&Forster is ranked as a top 40 commercial insurance
