Fitch Ratings has placed CK Infrastructure Holdings' (HKG:1038) A- long-term issuer default rating and senior unsecured rating on Rating Watch Positive, according to a Friday release.

The action follows a similar move on parent CK Hutchison Holdings (HKG:0001) following the announced sale of its port business.

The Hong Kong-based infrastructure company could gain from a two-notch uplift on its "a'" standalone credit profile if S&P upgrades the parent's ratings.

Fitch views the parent as having "medium" strategic incentive to support the company, based on the latter's modest growth outlook and its contribution of up to 12% in the parent's EBITDA.

The entities have narrow operational synergies, resulting in Fitch's "medium" assessment of the parent's operational incentive to support the company.

The company exhibits steady cash flow contribution from its investment portfolio, which also offset an expected rise in net debt this year, Fitch said.

The placement's resolution will depend on a similar action on the parent, which could last more than six months, S&P said.