Standard & Poor's has it revised its outlook on Canopius Managing Agents - Syndicate 4444 to positive from stable and has affirmed its Lloyd's Syndicate Assessment of '2+' (high dependency).

"The outlook revision reflects the anticipated reduction in the syndicate's reliance on third-party capacity providers over the medium term. This will be achieved via the gradual replacement of the $100m of LOC support currently provided by a consortium of banks, with capital backing from Canopius Group Ltd," said credit analyst Lucy Stupples.

The assessment reflects Canopius' good competitive position, good capitalization, and good earnings, which are expected to strengthen prospectively. The assessment is constrained, however, by the execution risks associated with recent acquisition activity and the present high reliance on third-party capacity providers.

The positive outlook reflects Standard & Poor's expectation of a reduction in the syndicate's reliance on third-party capacity providers over the medium term.
An upgrade is likely to occur if the syndicate delivers short-term earnings in line with expectations and prospects for continued good operating performance remain.

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