Moody's: Highmark notes Baa2

Moody's Investors Service said it assigned a Baa2 senior debt rating to Highmark Inc.'s issuance of $600 million of senior notes.

The outlook is stable.

The proceeds from these notes are intended for repayment of Highmark's existing senior notes at maturity in 2013 and for general corporate purposes.

Moody's also affirmed the company's current Baa2 debt rating on its existing notes and Baa1 insurance financial strength rating.

The ratings reflect the company's strong financial profile driven by its sound capital position and reinforced by a solid business reflective of the strength of the Blue Cross and Blue Shield trademark under which it markets healthcare products in Pennsylvania and West Virginia, the agency said.

The ratings also consider that Highmark's national specialty businesses, most notably dental benefits through United Concordia and vision benefits through Davis Vision, provide product and earnings diversification, the agency added.

The ratings also consider Highmark's geographical concentration in Western Pennsylvania, Moody's said.

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