NEW YORK, July 21 (UPI) -- Standard & Poor's of New York Wednesday revised its outlook on Health Care Service Corp. to positive from stable.
Health Care Service Corp. is also known as Blue Cross & Blue Shield of Illinois and Texas and New Mexico.
At the same time, Standard & Poor's affirmed its A counterparty credit and financial strength ratings on Health Care Service, and affirmed its A debt rating on the company's $400 million 10-year fixed-rate unsecured notes due June 15, 2011.
The rating agency said the positive outlook is based on the company's strong competitive position, strengthened earnings profile, and enhanced level of capitalization.
Offsetting factors include its somewhat less-stable historical earnings profile, relative to its peer group and limited geographic underwriting scope.
Looking ahead, Standard & Poor's said it expects Health Care Service's enrollment to grow by 8 percent to 10 percent and exceed 9.5 million members.
