Standard & Poor’s (S&P) has revised its outlook rating on global broker Marsh from negative to stable and confirmed its BBB- long-term and A-3 short-term ratings.

S&P says Marsh’s improved operating performance this year led to the revision.

“The outlook revision reflects our improved view of Marsh’s prospective earnings,” the report said.

“After several years of restructuring the business and a number of legal and regulatory settlements, Marsh’s operating results began showing more significant improvement starting in the fourth quarter of 2010.”

The ratings agency believes the efforts taken by Marsh’s management team to focus on strategy and lowering risk is delivering financial benefits.

“There was the significant reduction in debt at the organisation, streamlining the operations, the divestiture of the underperforming Kroll unit and an improved operating strategy at Marsh,” S&P said in the report.

The agency expects the improved earnings to continue this year and into 2012.

Marsh has a good liquidity with a cash balance of $US1.7 billion ($1.69 billion), and S&P is forecasting lower liabilities during the 2011 financial year thereby improving the company’s pre-tax profit.

It says if Marsh meets its earnings and profitability targets, the insurer could be re-rated again.