The disposal of CK Hutchison Holdings' (HKG:0001) port business, including its stake in Hutchison Port Holdings Trust (SGX:NS8U), could lead to S&P Global Ratings' reassessment of the company's business diversification, according to a Friday release.

The company's four core business segments, which also include retail, infrastructure, and telecommunications, will change to three upon the completion of the proposed transaction, S&P said.

The rating agency classifies the company as significantly diversified due to the low correlation of the four core lines, which also results in a two-notch uplift in its rating.

Although the planned sale could initially enhance the conglomerate's leverage, further improvements will hinge on how the sale proceeds will be used, which is still unclear, S&P said.

The rating agency expects the company's debt-to-EBITDA ratio to rise to up to 2.5x by the end of 2025 once the sale is completed.

Meanwhile, S&P expects Hutchison Port Holdings Trust to keep a stable credit profile despite the disposal, as the parent will still hold 100% of the subsidiary's trustee manager post-sale.

The port operator also has solid operating cash flow and controlled leverage management, which should anchor its standalone credit profile.