S&P cuts HIP outlook to negative

Standard & Poor's said it revised its outlook on Health Insurance Plan of Greater New York (HIP) to negative from stable.

At the same time, S&P said it affirmed its BBB- counterparty credit and financial strength ratings on HIP and affirmed its BB+ counterparty credit and financial strength ratings on ConnectiCare Inc., HIP's strategically important subsidiary.

The outlook on ConnectiCare remains stable.

According to the agency, the negative outlook on HIP reflects concerns that the significant negative volatility in the company's 2007 underwriting results could continue.

It further reflects S&P's view that HIP's risk management culture is weak in light of its tolerance of inadequate pricing and funding of certain programs, and the uncertainties about how regulatory, legal and political pressure could affect 2008 underwriting results.

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