DBRS confirms Fairfax; outlook positive

DBRS said it is confirming the BBB (low) rating on the senior unsecured debt of Fairfax Financial Holdings Ltd. and changing the trend to positive from stable.

DBRS said it is also assigning a preferred shares rating of Pfd-3 (low) with a positive trend.

The positive trend reflects Fairfax's enhanced financial flexibility following its strong earnings performance in 2008 and 2007 largely related to strong investment performance and reasonable underwriting results, the retention of close to $900 million in holding company cash and marketable securities at June 30, and, through the recent purchases of the outstanding minority interests in its major operating subsidiaries, access to an estimated annual operating cash flow of close to $1 billion.

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