Noridian's capitalization and operating performance improved in 2014. We don't expect litigation involving subsidiary NHS to have a significantly negative effect on capitalization. We are affirming our 'BBB+' counterparty credit and financial strength ratings on Noridian and revising the outlook to stable from negative. The stable outlook reflects our expectations of pretax statutory operating margins of at least 1.5% and capital and earnings that will support the current ratings. On April 2, 2015, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term counterparty credit and financial strength ratings on Noridian Mutual Insurance Co. (d/b/a Blue Cross Blue Shield of North Dakota) and revised the outlook to stable from negative. The primary drivers of the outlook revision are Noridian's improved capitalization
