NEW YORK (Standard&Poor's) June 10, 2003--Standard&Poor's Ratings Services said today that it placed its 'A+' counterparty credit and financial strength ratings on Highmark Inc., which does business as Highmark BCBS and Highmark Blue Shield, on CreditWatch with negative implications because of Highmark's reported year-to-date operating losses as of April 30, 2003, in the Central and Western Pennsylvania regions. "Standard&Poor's is concerned that continued price competition with Capital Blue Cross in the Central Pennsylvania region will adversely affect Highmark's earnings, capital, and business profile," explained Standard&Poor's credit analyst Steven Ader. (Prior to April 2002, Highmark and Capital Blue Cross jointly marketed and serviced 1.2 million members, which is 64% of the Central Pennsylvania
