On Nov. 20, 2007, Standard&Poor's Ratings Services assigned its 'A' counterparty credit and financial strength ratings to Noridian Mutual Insurance Co., which does business as Blue Cross Blue Shield of North Dakota. The outlook is stable. The rating reflects the company's dominance of the North Dakota health insurance market and very strong capitalization and liquidity. Offsetting these positive factors are the company's diminishing operating earnings and concentration in the North Dakota market as well as the restrictive regulatory environment in which it operates. The stable outlook reflects our expectation that Noridian will have a five-year average ROR of about 2%, which is adequate for the ratings given the company's dominant market position and very strong capitalization. However, if
