Moody's Investors Service today downgraded ratings on Cox syndicates 1208 and 1176.
The rating agency lowered the Syndicate Performance Rating on Syndicate 1208, Cox's commercial business, to B- (below average), negative outlook. The rating was previously B average, under review.
Nuclear Syndicate 1176's Performance Rating was also downgraded from A- (good) to B+ (above average), negative outlook.
Moody's said the downgradings followed Cox Insurance's announcement that "it has ceased underwriting all commercial business for 2002 apart from its general aviation and nuclear books and that it is to concentrate on retail business - the remaining commercial business is to either be supported by third party capital for 2003 or sold off".
The agency said it considers it likely that Cox will "eventually divest itself of the commercial business in its entirety to concentrate on its retail business," adding that due to closure costs the business would be likely to make a loss as it was wound down.
