Moody's Investors Service has downgraded KGM Underwriting Agencies' Syndicate 260. It lowered its Syndicate Performance Rating from B (average) to B- (below average).
The rating agency said that despite the syndicate performing "reasonably" it had downgraded its rating "due to uncertainty over future capital support and the potential for this to affect future returns".
It explained that concerns over capital stem from the fact that 90% of the syndicate's backing is from members' agents and there is the "likelihood that a significant number fo Names will leave the Lloyd's market in the short to medium term".
