Standard & Poor's has raised its outlook on wealth management group Raymond James Financial's credit ratings to stable from negative, saying the firm’s credit quality has improved, reports said.

The credit-ratings firm also noted that Raymond James has reported increasing profitability in recent years, driven by the diversity of its business. Raymond James operates in North America and the UK.

S&P said Raymond James's credit quality has rebounded this year after the company saw an increase in non-performing assets from 2008 to 2010.

There is a risk that the outlook for Raymond James could revert to negative if non-performing assets rise above a certain level or the company takes on a "sizeable" amount of riskier markets activity, S&P said.

Raymond James was not available for comment at the time of going to press.