Fitch Ratings affirmed Macquarie Group's (ASX:MQG) long-term issuer default rating at "A" and viability ratings at "a," the ratings agency said late Thursday.

Fitch also upgraded Macquarie Group unit Macquarie Bank's government support rating to "bbb+" from "bbb," citing the bank's rising systemic importance.

Macquarie Bank continues to accumulate loss-absorbing capacity in line with Australia's major banks, which is at a sufficient level to support its recapitalization in a resolution scenario, Fitch said.

The ratings agency expects Macquarie Group's business model and earnings stability to strengthen over the medium term, supported by continued expansion of the subsidiary's lending activities.

It also expects profitability at both the parent and the unit to remain sound, "underpinned by the breadth of their operations and revenue streams."