Standard & Poor's says it has lifted its long-term issuer credit rating on Members Equity Bank to BBB+, from BBB. S&P affirmed the short-term rating at A-2. It said the bank's outlook is stable.S&P said the rating uplift "reflects our positive reassessment of the bank's risk position, which has benefited from a reduction in its complexity as the bank has successfully transitioned its business model to one with less reliance on securitisation funding."The ratings agency said: "The assessment also recognises the limited risks between ME Bank and the Super Loans Trust Unit Trust [and] the absence of a legal connection between ME Bank and the SLT Unit Trust, and from any requirement for ME Bank to hold capital against of the assets of the SLT Unit Trust.""The stable outlook reflects our expectations that ME Bank will adequately manage the funding and liquidity challenges that may arise as it continues to pursue a greater proportion of on-balance-sheet retail and wholesale funding."S&P said: "There is limited potential for a higher rating for ME Bank in the medium term… Upward rating prospects could increase if ME Bank's penetration within superannuation fund member-base were to increase to a more meaningful level."