Moody's sees limited impact on Fairfax leverage from IDBI Bank takeover

Global rating agency Moody's on Monday said it expects Fairfax Financial Holdings' proposed acquisition of a majority stake in IDBI Bank to have limited impact on its financial leverage, citing the Canadian investor's funding plans and strong liquidity position.

As of June 30, 2026, Fairfax's financial leverage stood at around 34 per cent, which declined to 27 per cent after excluding non-recourse debt at its non-insurance companies, Moody's said in a statement.

The rating agency noted that it does not expect a significant increase in Fairfax's financial leverage, given its funding plans for the transaction.

Moody's also highlighted Fairfax's policy of maintaining at least USD 1 billion in cash and liquid investments at the holding company at all times, a practice it expects the company to continue after the transaction.

As of June 30, 2026, Fairfax had USD 2.3 billion in cash and liquid investments at the holding company, providing it with a liquidity cushion as it pursues the ...