Moody’s has downgraded its corporate family rating on global loss adjuster Cunningham Lindsey, due to lower claims volumes.

The move to B2 from B1 reflects a decline in projected revenues and earnings for the global loss adjuster.

The outlook is negative because of the company’s substantial financial leverage and limited interest coverage, plus the challenge of increasing earnings.

“The company is taking steps to reduce costs and expand its service offerings, but we regard the projected credit metrics as more consistent with a B2 corporate family rating,” Moody’s analyst Enrico Leo said.

Cunningham Lindsey manages claims across multiple jurisdictions for global insurers and self-insured entities – an offering few competitors can match.

However, it faces high debt, low interest coverage and fluctuations in the volume of weather-related and other complex claims, which account for a significant slice of revenue.