S&P Global Ratings retained the BBB+ long- and A-2 short-term issuer credit ratings on China Taiping Insurance Group (HK) and China Taiping Insurance Holdings (HKG:0966), collectively the TP Group, according to a Thursday release.

S&P also affirmed the A long-term currency insurer financial strength and issuer credit ratings on subsidiaries Taiping General Insurance, China Taiping Reinsurance, Taiping Reinsurance and China Taiping Insurance (Singapore).

The rating agency changed its capital and earnings assessment on the TP Group to "satisfactory" from "fair" following a revision in the criteria for insurers' risk-based capital.

In revising the assessment, S&P saw a more explicit recognition of diversification benefits and the absence of haircuts and capital charges due to the group's adoption of International Financing Reporting Standards (IFRS) 17 accounting standards.

The outlook is stable, mirroring S&P's view of a high likelihood of extraordinary support from the Chinese government, TP Group's solid competitive position in its core markets in the next two years and steady earnings and controlled debt leverage.

A weaker group credit profile due to a marked decline in profitability and capitalization, lower sovereign credit ratings on China, and elevated liquidity risks would prompt a rating downgrade, S&P said.

Meanwhile, an upgrade is unlikely over the next two years, the rating agency said.

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