S&P Global Ratings revised Baltimore-based Mercy Health Services outlook to positive from stable.
Concurrently, S&P affirmed its "BBB" long-term rating on the health system's bonds.
The outlook revision is a result of the Mercy Health Service's improving profitability margins and consistently strong cash flow, which is reducing leverage.
S&P acknowledged management's growth strategy that helped diversify its revenue base, extend its geographic reach and strengthen its financial profile.