Adequate competitive position Negative operating performance Intermediate geographic footprint Very strong capital Intermediate risk position Adequate financial flexibility Seasoned management team Adequate enterprise risk management Exceptional liquidity The stable outlook reflects Standard&Poor's Ratings Services' expectation that Highmark Inc. will maintain its adequate competitive position, enabling it to generate an annual return on revenue (ROR) of around 2% and maintain statutory capital redundant at least at the 'AA' level. We believe Highmark has sufficient capital strength at the current rating to withstand any resulting adverse developments if its contract with the University of Pittsburgh Medical Center (UPMC) is not renewed. We could lower the ratings if statutory capital redundancy falls below the 'AA' level, which could be caused by
