Aviation excess of loss syndicate Kingsmead 271 suffered a major blow this week when its performance rating was downgraded to B- Below Average from B Average by ratings agency Moodys.
The move, part of an on-going review of Lloyd's syndicates, follows the recent announcement reported in last week's Insurance Times, that the syndicate will not trade in the year 2000 year of account under the Advent Group.
Moody's said that the syndicate's inability to attract alternative capital meant that it would not be able to match the returns of rival syndicates in the market.
Syndicate 271 is still under the Moody's microscope and could still be downgraded further due to the “material uncertainty of the syndicate's future”.
Last week the ratings agency changed its outlook to negative on syndicates Hiscox 33 to A- and Kiln 807 to B+.