Moody's Investors Service has downgraded the syndicate performance rating of Lloyd's Syndicate 727 - S A Meacock & Company - to B- (below average) from B (average).
The rating agency cited capital backing from members' agents, accounting for 74% of capacity, as a concern.
It explained: "Moody's considers that it is likely that many traditional Names will be unable to maintain their existing allocations for 2003 and the syndicate, despite the expectation of significantly improved returns, may suffer from reduced support for 2003 and subsequent years.
"It is expected in any event that the syndicate could merge or cease to trade within the next few years when Michael Meacock decides to leave the business."
Moody's summed up: "The syndicate has therefore been downgraded to B- Below Average due to the uncertainty over future capital support, the syndicate's future position as a stand-alone entity and the potential for future returns and continuity of relationships for policyholders to be affected."
