Standard & Poor's Ratings Services announced on Monday that it has assigned 'A' long-term and 'A-1' short-term issuer credit ratings to the Agricultural Bank of China Ltd.

The outlook for the long-term rating is stable, and "cnAA+/cnA-1" Greater China regional scale ratings were assigned to the bank, the international rating agency said in a press release.

"The ratings reflect ABC's 'bbb-' stand-alone credit profile and our view that there is a 'very high' likelihood that the government of China would provide timely and sufficient extraordinary support in the event of the bank's financial distress," said Terry Sham, credit analyst at S&P.

It classified the bank as a government-related entity and incorporated a four-notch uplift to the rating from the stand-alone credit profile.

The agency based the Agricultural Bank of China's credit profile on the bank's "strong" business position, "moderate" capital and earnings, "moderate" risk position, "above-average" funding and "strong" liquidity, it said.

"The bank's strong position in county and rural banking markets places it in a better position than its major peers to benefit from China's urbanization and the ongoing economic catch-up of rural regions," Sham said.

But S&P also warned that it may lower the rating if the sovereign rating is lowered or the bank's credit profile deteriorates to 'bb+', which could happen if it had substantially deteriorated capital strength or credit losses that are significantly worse than projected.