Why a second-rate ship of the line was a major honour

Why would a famous naval name such as Hood be assigned only to a second-rate ship of the line?

A second rate was an exceptionally rare three-decked flagship, so receiving one was among the highest honors available rather than a slight.

The figures cited for 1794 give five first rates and nine second rates; those for 1814 give eight first rates and seven second rates. Together, those prestigious ships numbered only in the low teens. A second rate was still a three-decker that could carry an admiral and serve as the flagship of a substantial squadron or fleet. The 1794 comparison includes 70 third rates, 78 fifth rates, and 76 sloops in commission. The 1814 figures include 100 third rates, 134 fifth rates, and 360 sloops, alongside the much smaller first- and second-rate force. The largest ships were fleet centrepieces, making one as a namesake a high honour. Capture promised substantial prize money, with the greatest share described as going to the ship that boarded first.