S&P Global Ratings maintained China Water Affairs Group's (HKG:0855) BB+ long-term issuer credit rating, driven by the solid performance of its core water business, according to a Tuesday release.

The rating agency expects the company's core water unit to sustain steady volume growth anchored by urban-rural water supply links.

An expanded pipeline direct drinking water segment could also provide the company with additional revenue, the rating agency said.

However, the company faces reduced new water connections and higher offshore interest rates.

To counter any impact on liquidity, the company needs to tighten its capital expenditures, adjust water tariffs, and refinance its offshore debt, Fitch said.

The outlook is stable, with the company expected to further widen the scope of its core water segment with steady profitability in the next 12 to 18 months.