Swire Pacific's (HKG:0019) strong financial base, anchored by its project pipeline and solid market share, should serve as buffers against increasing geopolitical risks and dampened demand in some markets, S&P Global Ratings said in a recent release.

These factors should help the Hong Kong-based conglomerate continue with its deleveraging, with S&P projecting its debt-to-EBITDA ratio dropping to between 4x and 4.5x for 2026 to 2027.

S&P estimates the ratio declining to about 4.6x in 2025, mainly due to asset disposals amounting to above HK$8 billion as well as reduced capital expenditure.

The rating agency also expects an average annual EBITDA expansion of between 5% and 8% over the next two years, driven by major project launches as part of efforts to double investment property floor spaces in mainland China by 2032.

For the company's property segment, retail assets in mainland China have become a key contributor to rental income, while a modest demand recovery in Hong Kong should help ease reduced rentals on lease renewal, according to S&P.

The rating agency sees mixed prospects for other businesses, with revenue growth for the beverage unit facing pressure from consumption and distribution trend shifts in mainland China and economic weakness in Southeast Asia.

Meanwhile, the company's aviation maintenance segment and its airline associate Cathay Pacific Airways (HKG:0293) face demand constraints and fuel cost increases amid the Middle East conflict, S&P said.

The company will still push for growth investments and shareholder returns, although it has already moved past its peak spending period from 2022 to 2024, S&P said.