...Highmark Inc. and its Blue-branded affiliates are the health insurance plans of Highmark Health, a not-for profit managed-care (nonoperating holding company) based in Pittsburgh, PA. It is an independent not-for-profit licensee of the Blue Cross Blue Shield Assn. As part of S&P Global Ratings' group rating methodology, we view Highmark Inc. as a core subsidiary of the Highmark enterprise; thus, our ratings are based on the group credit profile. The ratings on Highmark reflect our assessment of the group's strong business risk profile and very strong financial risk profile, leading to an anchor score of either 'a+' or 'a'. We assigned the latter stand-alone credit profile anchor, which reflects Highmark's lower level of operating performance (EBIT return on revenue [ROR] metric) and historically higher level of earnings volatility than higher-rated Blue Cross Blue Shield peers'. In addition, the company's operating earnings and regulated capital growth will continue to face headwinds associated...
