S&P Global Ratings upgraded its corporate credit rating on Physicians Realty Trust and its operating partnership to BBB- from BB+, with a stable outlook.

The rating agency also affirmed the BBB- issue-level rating on the company's $400 million senior unsecured notes and withdrew its 2 recovery rating.

S&P attributed the upgrade to the company's deleveraging efforts, improving asset quality and increased scale.

The rating agency said the stable outlook mirrors its expectations that Physicians Realty will continue to expedite the growth of its portfolio primarily through equity capital, while generating steady cash flows with limited tenant stress.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.