S&P assigns Noridian A

Standard & Poor's said it 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.

S&P also said that the outlook on Noridian is stable.

"The rating reflects the company's dominance in the North Dakota health insurance market and very strong capitalization and liquidity," said S&P credit analyst Hema Singh.

"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 agency said that the stable outlook reflects its 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.

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