S&P Global Ratings has maintained Shanghai Construction Group's (SHA:600170) BBB long-term issuer credit rating, according to a Monday release.

The rating agency sees more policy-linked engineering and construction (E&C) and public services activities for the company.

S&P now sees the company as having a high likelihood of extraordinary support from the Shanghai municipal government in case of need.

The company will have greater importance in modernizing the city's underground infrastructure in the next five years, S&P said.

However, China's E&C industry will face further weakness given dampened demand and longer cash collection periods, with the company's sluggish profits and working capital conditions leading to a debt-to-EBITDA ratio above 4x over the next two years, S&P said.

The outlook is stable, stemming from the company's perceived importance in executing government-tied services in Shanghai, the rating agency said.

Material shifts in the company's debt-to-EBITDA ratio or the likelihood of extraordinary government support could lead to future rating actions, S&P said.