The insurer financial strength rating on Highmark Inc., which does business as Highmark Blue Cross Blue Shield&Highmark Blue Shield, is based on the company's strong competitive position in its core markets of western and central Pennsylvania, very strong capitalization and liquidity, good earnings profile with diversification through its dental and vision subsidiaries, and strong financial flexibility. Slightly offsetting these factors are Highmark's earnings, which remain challenged by industrywide factors such as limited organic growth opportunities in the commercially insured population and intense price competition for existing business. In addition, Standard&Poor's Ratings Services expects increasing recessionary pressures to further strain prospective revenue and earnings growth. Other rating offsets include regulatory restraints on Highmark's level of surplus and
