A.M. Best Co. has assigned a debt rating of “bbb” to CAD 275 million 7.25% senior unsecured debentures due 2020 to be issued by Fairfax Financial Holdings Limited (Fairfax) (Toronto) (TSX: FFH and FFH.U). The assigned outlook is stable. All other ratings of Fairfax are unchanged. The offering is expected to close on or about June 22, 2010. The proceeds will be used for the retirement of existing obligations, to augment Fairfax’s cash position, to increase short-term investments and marketable securities at the holding company and for general corporate purposes. Fairfax’s unadjusted debt-to-total capital ratio is calculated at 29.6% following the issuance of these notes; adjusted leverage is calculated at 26.6%. These calculations include the debt of Fairfax’s wholly owned subsidiaries, which are capable of servicing their own debt. Following the closing of the offering, Fairfax will have cash and marketable securities in excess of USD 1 billion, affording it a significant level of liquidity at the holding company level. The company’s financial leverage and coverage ratios remain well within A.M. Best’s guidelines for its debt ratings and are expected to remain so over the near term. For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.