Standard & Poor's Ratings Services has raised its outlook to "stable" from "negative" on special purpose revenue bonds issued by the state on the behalf of the Kuakini Health System.

The ratings agency said the revised outlook reflects a reduction in Kuakini's operating losses.

"Although Kuakini's liquidity has declined, it has a light debt load, stable to growing volume statistics and improved operating performance for the year to date," said S&P Credit Analyst Geraldine Poon in a press statement.

S&P also affirmed its BBB1 long-term rating on the bonds.