Moody's Investors Service has placed the B (average) performance rating of BF Caudle Agencies Limited - Lloyd's Syndicate 2 - under review for possible downgrade.

The syndicate receives more than half its support from member's agencies which has caused concern.

The rating agency explained: "With the trend of consolidation continuing within the Lloyd's market and the likelihood, in our opinion, that many traditional Names will be unable to maintain their existing allocations for 2003, Moody's sees the potential for Syndicate 2 to merge into Syndicate 780 in the short to medium term."

The agency also noted that this action took place "against a background of the likelihood of Syndicate 2 recording material losses for 1999-2001....and current concerns over the amount of capital that may be allocated to Syndicate 2's current book of business going forward".