Fairfax Said in Talks With OMERS to Back Takeover

Fairfax is in discussions with Canadian pension fund OMERS to secure $3 billion in financing for its largest acquisition in history, a $4.9 billion deal to acquire Allied World Assurance. Fairfax aims to avoid additional debt to maintain its credit rating and is seeking partners like OMERS and CI Investments to fund the transaction. The company is cautious about its debt rating, which is currently the lowest investment grade by S&P Global, and wants to avoid being downgraded to junk status.

What risks does Fairfax face if they cannot find a financing partner?

What are the potential consequences of Fairfax taking on more debt?