S&P Global Ratings maintained Shenwan Hongyuan Securities' BBB long- and A-2 short-term issuer credit ratings, with a stable outlook on the long-term rating, according to a Thursday release.

The rating agency also affirmed the same ratings on core subsidiary Shenwan Hongyuan (H.K.) (HKG:0218) and Shenwan Hongyuan Securities' guaranteed debt.

S&P expects the China-based securities company to continue having very strong capitalization, reasonable risk management, and a stable market position in the next two years, which will support its "bbb-" standalone credit profile.

The company's risk exposure has increased due to higher holdings of Chinese bank-issued capital securities, but its ample capital levels and active risk hedging should provide some moderate shield, S&P said.

The rating agency also believes the company will retain its close ties and limited importance to the central government.

A significant rise in the company's level of risk-taking could trigger a rating downgrade, while a more stable market position and earnings could support an upgrade, S&P said.

Meanwhile, future rating movements on Shenwan Hongyuan (H.K.) will depend on similar actions on the parent.