On Nov. 4, 2002, Standard&Poor's Ratings Services affirmed its single-'A'-plus counterparty credit and financial strength ratings on Noridian Mutual Insurance Co., which does business as Blue Cross and Blue Shield of North Dakota (BCBSND). The outlook is stable. The ratings are based on the company's continued dominance of the North Dakota health insurance market, very strong capitalization, and conservative investment portfolio. These positive factors are offset by the plan's erratic underwriting results and restrictive regulatory environment. Standard&Poor's expects a pretax gain of about $12 million for full-year 2002. For 2002, BCBSND's capital adequacy ratio, based on Standard&Poor's model, is expected to decline to about 190%, reflecting the plan's pricing strategy, which is designed primarily
