AM Best this week upgraded the financial strength rating of Lloyd's to A (excellent) from A- (excellent).
AM Best said the upgrade reflected Lloyd's "improving prospective capitalisation, strong operating performance, its global reach and improvements in risk management".
But AM Best added that Lloyd's exposure to "long-term uncertainty relating to the adequacy of Equitas' reserves" was an offsetting factor.
AM Best managing senior financial analyst Miles Trotter said: "Unless there is a major legislative change that effectively crystallises Equitas' losses early, AM Best believes it might still be a few years before Equitas' ability to adequately run-off its liabilities can be accurately assessed."
AM Best said the central solvency level at Lloyd's (including the net assets of the corporation, the central fund and the callable layer) was likely to be increased by £2bn by 2008.
The ratings agency added that it anticipated "other sources of finance" would be used to enhance central capital in addition to members' contributions.
What ratings AM Best assigned the Lloyd's syndicates
The following syndicates had A (excellent) syndicate ratings affirmed by AM Best and were assigned an issuer credit rating of "a+"
Hardy Syndicate 382
Kiln Syndicate 510
Atrium Syndicate 609
Beazley Syndicates 623 and 2623
Omega Syndicate 958
Amlin Syndicate 2001
Catlin Syndicate 2003
Ascot Syndicate 1414 had its A+ (Superior) syndicate rating affirmed and was assigned an issuer credit rating of "aa-".
The following syndicates had their AM Best syndicate ratings upgraded to A (excellent) from A- (excellent) and were assigned an issuer credit rating of "a":
Euclidian Syndicate 1243
Cathedral Syndicate 2010
Markel Syndicate 3000
Atrium Syndicate 570
