We are concerned about Highmark's operating performance, and the prospect for additional financial commitments related to its integrated delivery network strategy. We have revised our outlook on the company to negative and affirmed our long-term 'A' rating. We expect Highmark's operating earnings to weaken further in 2013 before rebounding in 2014. On Jan. 28, 2013, Standard&Poor's Ratings Services affirmed its 'A' long-term counterparty credit rating on Highmark Inc. d/b/a BCBS&Highmark Blue Shield and revised the outlook to negative from stable. The outlook revision reflects our expectation that Highmark's operating earnings will weaken further in 2013 primarily because of concessionary pricing actions implemented during the company's contentious contract negotiations with UPMC, as well as expenses related to
