S&P Global Ratings has upgraded the ratings of AIA Group (HKG:1299) and its subsidiaries, according to a recent release.

The rating agency raised the group's long- and short-term issuer credit ratings to AA-/A-1+ from A+/A-1.

The operating subsidiaries' solid operating profit will support the company's capitalization despite progressive profit distribution and share repurchases, S&P said.

The group can also use its well-entrenched brand and distribution channel control to achieve efficiency across its markets in Asia-Pacific, the rating agency said.

S&P's stable outlook is supported by its expectation that the group will continue to hold a leading position across its core markets and to pull through stress at the 99.99% confidence level in the next two years.

A notable decline in the group's capitalization could lead to a negative rating action, while an upgrade is not likely in the next two years, S&P said.