Best’s News & Research Service - November 17, 2021 02:10 PM (EST)
AM Best Comments on Credit Ratings of Odyssey Group Holdings, Inc. Members Following Announcement of Minority Stake Sale
- November 17, 2021 02:10 PM (EST)
Oldwick //BestWire// - AM Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of the members of Odyssey Group Holdings, Inc. (Odyssey Group) remain unchanged following the announcement of the sale of a 9.99% minority stake in the group for USD 900 million. The deal also includes the subsequent repurchase of subordinated voting shares from Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada), up to an aggregate value of USD 1 billion. Additionally, AM Best has commented that the Long-Term ICR of “bbb” (Good) and the various Long-Term Issue Credit Ratings on the unsecured debt and preferred equity of Fairfax remain unchanged following the same announcement.
The transactions are not anticipated to have a material immediate impact on either Odyssey Group’s or Fairfax’s balance sheet strength metrics, nor any impact to the current governance structure. While the final financial outcome is dependent on various factors, AM Best does not anticipate the financial burden to fall outside of a tolerable range. AM Best will continue to monitor Odyssey Group and Fairfax as the transactions close, and will respond if actual results differ materially from assumptions. Through third-quarter 2021, Odyssey Group and Fairfax each have posted improved earnings over the same period in the prior year.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.