The performance rating on Greenwich's Syndicate 994 has been downgraded to C Below Average, from B-minus Below Average, on concerns over future capital backing.
The performance rating on Greenwich Managing Agency's Syndicate 994 has been downgraded to C Below Average, from B-minus Below Average, on concerns over future capital backing.
Ratings agency Moody's said the rating was based on a potential short-term outlook, despite Greenwich currently holding discussions with alternative capital providers over backing for 2003.
Moody's said Syndicate 994, which has been managed by Greenwich since 2000, had also been affected by poor market conditions and the impact of losses from the 11 September terrorist attacks on the US.
The syndicate, a predominantly short tail, non-marine syndicate, was solely reliant on Greenwich's dedicated vehicles for its capital backing, Moody's said. The vehicles started between 1997 and 2000 and operate on a geared basis.
For 2002, capacity is due to fall from the current level of £70m, although a new dedicated vehicle has been formed.
The syndicate was managed by Chartwell Managing Agency up until 2000. It reported a loss of 26% for 1998 and has forecast losses of 26% and 10% for 1999 and 2000, respectively.
