Nomura Holdings (TYO:8604) and core subsidiaries such as Nomura Securities to positive from stable, according to a Tuesday release.

The rating agency also affirmed its BBB+/A-2 long-term and short-term issuer credit ratings on Nomura HD and A-/A-2 long-term and short-term issuer credit ratings on the core subsidiaries.

Steady, growing earnings and better profitability should benefit the company's sustainable business framework, S&P said.

Specifically, rising recurring revenue from the company's wealth management segment and a boost in assets under management in the investment management unit should support this outlook, the rating agency said.

The company should also sustain its capitalization to shield against losses over the next one to two years, with risk-adjusted capital (RAC) ratio maintained between 8% and 9%, according to the rating agency.

Better local business conditions, government promotion of securities investment among households, moderately higher interest rates, and solid corporate activities such as mergers should also anchor the company's prospects, S&P said.

The company also retains its high systemic importance to Japan's financial system, with the resulting high likelihood of extraordinary government support buoying its credit profile, according to S&P.

Notable shifts in the company's operating performance, profitability, RAC ratio, or funding and liquidity profile could trigger future rating actions.