Fitch lifts Fairfax Financial

Fitch Ratings said it upgraded Fairfax Financial Holdings Ltd.'s issuer default rating to BBB from BBB- and senior debt to BBB- from BB+. The agency also said it assigned a BBB- rating to its C$275 million issue of unsecured senior notes due 2020.

The outlook is stable.

The ratings reflect Fairfax's improved capitalization, strong profitability, reasonable financial leverage and sizable cash position, Fitch said.

Partially offsetting these positives are anticipated challenges in the overall competitive property/casualty market rate environment and the potential for additional adverse reserve development, particularly on older accident years and in runoff operations, the agency said.

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