SoftBank's "aggressive growth strategy and financial policy are unlikely to erode its creditworthiness materially in the next one to two years," said S&P, which affirmed SoftBank's long-term issuer credit rating at BB+.

The conglomerate has monetised assets including its stake in Alibaba Group, building its cash reserves as a buffer during the COVID-19 pandemic and as dry powder for its tech investing.

S&P's brightening outlook for the group, whose portfolio companies are benefiting from demand for listings in frothy markets, contrasts with peer Moody's Investors Service, which has a negative outlook on the group.

SoftBank contests Moody's analysis, which points to the complexity of the group's balance sheet, and has requested the rating agency remove its rating.

(Reporting by Sam Nussey, editing by Louise Heavens, Kirsten Donovan)

By Sam Nussey