Fitch Ratings upgraded China CITIC Financial Asset Management's (HKG:2799) long-term issuer default ratings to BBB+ from BBB with a stable outlook.

The ratings agency also upgraded the company's government support rating and viability rating.

Fitch said the upgrade reflects the company's strengthened policy role in resolving distressed assets.

It also cited China CITIC Financial Asset Management's closer integration with CITIC Group and its growing importance in advancing the Chinese government's economic priorities.

The ratings agency also pointed to improving asset quality, stronger earnings stability and adequate regulatory capital.

However, Fitch said macroeconomic pressures, legacy troubled assets and weakness in the property market continue to weigh on the company's core distressed-asset management business.