Fitch Ratings has raised China Minsheng Banking's (SHA:600016, HKG:1988) long-term foreign currency issuer default rating to BBB- from BB+, among other ratings, according to a Thursday release.

The upgrade reflects the bank's growing scale, expanding retail franchise, and increased role in government efforts for micro and small-sized enterprises.

The improved viability rating of bb- stems from a stronger intrinsic credit profile, marked by fewer off-balance-sheet activities and a more tempered risk appetite, Fitch said.

The bank also exhibits improving asset quality, modest profitability, rising capitalization, and better funding access, the rating agency said.

Notable changes in government ownership or movements in key metrics such as the common equity tier one ratio could trigger future rating actions, Fitch said.