MELBOURNE (Standard&Poor's) June 1, 2006--Standard&Poor's Ratings Services today said that its 'BBB+/Negative' corporate credit rating on Leighton Holdings Ltd. (Leighton) and its 'BBB-' rating on Leighton's hybrid issue are not affected by a likely material increase in the company's operating leases. Leighton announced earlier today that the company had entered into an A$750 million operating lease facility with the Commonwealth Bank of Australia (CBA; AA-/Stable/A-1+) to support the group's contract-mining activities. "Despite a potential weakening in lease-adjusted credit metrics because of the expected substantial increase in operating leases, Leighton's option to terminate the leases under the CBA facility (subject to certain conditions) can reduce the group's exposure to the mining sector," Standard&Poor's credit analyst
