Standard & Poor's Ratings Services revised its outlook on WellCare Health Plans Inc. to "stable" from "positive" to reflect a potential for reduced financial flexibility.

The ratings service said Tuesday that WellCare has resolved securities class action and civil lawsuits and will pay a total of $337.5 million over the next several years. These payments create the potential for "reduced liquidity and financial flexibility," S&P credit analyst Hema Singh said in a statement.

"The stable outlook reflects our expectation for sustained business and operating performance, which could improve the company's creditworthiness given the various resolutions related to past accounting investigations," the statement said.

S&P said WellCare has a relatively stable business profile and stabilizing operating performance. But it also noted the insurer's revenue is concentrated in government-sponsored business and comes with a risk for regulatory or legislative intervention.

S&P also said Tuesday it affirmed its "B" counterparty credit rating on the company.