Fitch Ratings has maintained Hong Kong-based Hang Seng Bank's (HKG:0011, HKG:80011) AA- long- and F1+ short-term issuer default ratings, among other ratings, according to a Wednesday release.

The bank's long-term issuer default rating is one notch higher than its "a+" shareholder support rating, since Fitch expects its senior creditors to gain from notable junior debt and equity buffers issued to parent The Hongkong and Shanghai Banking Corp.

This is in line with the resolution plan of ultimate parent HSBC Holdings Plc (HKG:0005).

The bank has a solid domestic franchise due to its well-entrenched relationships with local retail customers and corporations, as well as its diversified products.

Its strong profitability and healthy capital and liquidity buffers offset the current weakness in the local commercial real estate (CRE) sector, Fitch said.

However, the bank's exposure to Hong Kong CRE loans serves as a weakness.

Still, Fitch sees the bank maintaining proactive credit risk management, which supports its stable outlook.