DBRS: Fairfax share issue positive

DBRS said that Fairfax Financial Holdings Ltd.'s announcement that it has received commitments for $1 billion in common share equity to finance the repurchase of the 27.4% of Odyssey Re Holdings Corp., which it originally sold to the public in 2001.

Since the company has not taken on additional debt to finance this repurchase, DBRS said it views this action and its financing by common share equity positively.

The agency said that this action follows the company's early 2009 repurchase of the 24.8% of Northbridge Financial Corp. that it did not own, which was financed with $374 million of holding company cash.

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