This year’s low number of catastrophes has prompted Moody’s to downgrade claims management company Cunningham Lindsey’s corporate family rating.

Moody’s analyst Enrico Leo says Cunningham Lindsey’s rating falls to B3 from B2 with a stable outlook.

“The rating downgrade reflects the challenges the loss adjuster faces from the relatively low volumes of catastrophe losses and other claims in recent years, leading to declines in profitability, interest coverage and cashflow coverage.”

Mr Leo says Cunningham Lindsey also carries integration and execution risk from acquisitions.

It has a strong market position in claims management services and a diversified global customer base, but these are offset by high debt, low interest coverage and fluctuations in the volume of weather-related and other complex claims.

He says the company is taking steps to reduce costs and diversify its offering.