Shares of troubled lender Fremont General Corp. gained more than 23 percent Wednesday after Standard & Poor’s Ratings Services said the firm’s decision to sell its commercial real estate lending business will have a positive effect on the company’s ratings.

S & P; said that despite Fremont’s plans to shift its focus to retail banking, the Santa Monica firm’s future remains uncertain, but S & P; did change Fremont’s rating from a “negative” outlook to “developing,” boosting Wall Street’s confidence.

This comes a day after Fremont said that it was selling its commercial lending business for $1.9 billion in an effort to focus on its emerging retail banking business. The company also named Gerald Ford and Carl Webb chairman and chief executive, respectively.

“These transactions closing as expected would have a positive impact on Fremont’s credit risk profile,” S & P; said. “We do not know at this time, however, the future direction in which the prospective investors and new management team plan to take the company.”

Fremont’s shares rose 23.3 percent, or $2.31, to $12.34 in afternoon trading Wednesday on the New York Stock Exchange.