S&P Global Ratings affirmed its "BBB+" long-term rating and underlying rating on Englewood, Colo.-based Catholic Health Initiative's outstanding debt.
The affirmation is a result of several factors, including CHI's strong geographic reach, excellent financial dispersion and adequate financial profile.
The outlook was revised to positive from stable.
"The outlook revision reflects CHI's potential merger with [San Francisco-based] Dignity Health as outlined in their definitive merger agreement combined with incrementally improved, though still weak, performance of CHI's continuing operations," said S&P credit analyst Martin Arrick.