Standard & Poor's Ratings Services affirmed its "A" financial strength rating for the Hawaii Medical Service Association, saying the ratings reflects HMSA's dominant market position and strong capitalization.

Standard & Poor's said HMSA has more than 65 percent of the insured market in Hawaii and that it anticipates the health insurer will maintain this for the foreseeable future. Although HMSA's reserves took a hit with the recent market decline, it should continue to have adequate capital and liquidity, the agency said.

At the same time Standard & Poor's maintained its negative outlook for HMSA, saying it reflects the insurer's declining operating performance. It expects HMSA's pre-tax losses will total between $35 million and $40 million this year.

Standard & Poor's said it was also withdrawing ratings for HMSA at the request of the insurer. An HMSA spokeswoman said the insurer made the request because of budgetary concerns.