A.M. Best Co. has assigned a debt rating of “bbb” to the forthcoming CAD 200 million 5.84% 10-year senior unsecured notes due 2022 of Fairfax Financial Holdings Ltd. (Fairfax) (Toronto) (TSX: FFH). The assigned outlook is stable. All remaining ratings of Fairfax and its subsidiaries are unchanged. The senior notes will be issued in Canada under a prospectus supplement to Fairfax’s short form base shelf prospectus dated December 10, 2010. The net proceeds of the offering will be used to augment Fairfax’s cash position, increase short-term investments and marketable securities held at the holding company level, retire outstanding debt and other corporate obligations from time to time, and for general corporate purposes. At June 30, 2012, Fairfax’s adjusted debt-to-total capital ratio was calculated at 32.6%. Based on the gross proceeds of CAD 200 million, financial leverage and coverage ratios are expected to remain within A.M. Best’s guidelines for Fairfax’s current ratings. These calculations include the debt of wholly owned subsidiaries, which are capable of servicing their own debt. In addition, Fairfax maintained cash and investments of approximately $1 billion at June 30, 2012. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.