S&P Global Ratings has kept Asia Financial Holdings (HKG:0662) subsidiary Asia Insurance's A local currency long-term issuer credit and financial strength ratings, according to a Thursday release.

The rating agency's revised criteria for insurers' risk-based capital has not impacted the company's standalone credit profile, as it maintains strong capital and earnings and posts more solid capital buffers under the new criteria.

However, increased natural catastrophe risk capital requirements and changes in risk charges serve as downside factors, the rating agency said.

The outlook is stable, reflecting S&P's view that the insurer will continue having a strong competitive position, profitable underwriting and robust capital in the next 12 to 24 months.

A rating downgrade will hinge on a weaker competitive position and a sizable decline in capitalization, S&P said.

Meanwhile, an upgrade, while unlikely, will depend on a significant rise in the insurer's competitive position and capitalization.

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