A.M. Best Places Ratings of Capital District Physicians' Health Plan, Inc. and CDPHP Universal Benefits, Inc. Under Review With Negative Implications.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of "bbb" of Capital District Physicians' Health Plan, Inc. (CDPHP) and the FSR of B+ (Good) and ICR of "bbb-" of CDPHP Universal Benefits, Inc. (UBI) (both of Albany, NY) under review with negative implications.

These rating actions follow CDPHP and UBI's declining underwriting performances reported through third quarter 2008. Furthermore, CDPHP has reported an underwriting loss through September 2008, which is its first underwriting loss since 2003. Additionally, A.M. Best is concerned about the low level of capitalization at UBI. However, A.M. Best does recognize that, in the past, CDPHP has provided surplus notes to support UBI, including fourth quarter 2008.

The ratings will remain under review pending further discussion with both companies' management, which will focus on a review of year-end 2008 results as well as financial projections for 2009 and the overall capital management of both companies.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.