We expect weaker earnings from Highmark Inc. than we previously anticipated. We are lowering our ratings on the company to 'A-' from 'A'. The stable outlook reflects our expectation that Highmark will maintain its adequate competitive position. On March 4, 2014, Standard&Poor's Ratings Services lowered its long-term financial strength and counterparty credit ratings on Highmark Inc. to 'A-' from 'A'. The outlook is stable. The downgrade reflects our expectation for weaker future earnings than we had previously anticipated. Whereas our previous expectation was that the company would generate annual returns on revenue (ROR) of around 3%, we now expect longer-term RORs of only around 2%, with 2014 and 2015 RORs being profitable, but less than 2%. Our lower
