S&P rates Fairfax notes BBB-

Standard & Poor's said it assigned a BBB- rating on Fairfax Financial Holdings Ltd.'s senior debt issue.

The ratings on Fairfax, its subsidiaries and other outstanding debt issues remain unchanged.

The company will use the net proceeds to exchange senior notes from various issues maturing between 2012 and 2017 for an amount totaling $500 million.

On a pro forma basis, the company's debt leverage remains largely unchanged and the fixed-charge coverage ratio improves slightly, S&P said.

The debt exchange will lead to a slight improvement in the fixed-coverage ratio and will partially reduce upcoming debt maturities by somewhat extending the average maturity of outstanding debt, the agency said.

The ratings on Fairfax are based on the company's strong and geographically diversified business profile, strong investment management and strong consolidated financial profile as well as the company's exposure to catastrophes and above-average tolerance for market risk, the agency added.

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