We assess LS Newco as having a strong position in the Australian and New Zealand niche telecommunication and infrastructure services markets, and moderately conservative financial policies. The company's small scale and limited diversity, as well as ownership by a financial sponsor, constrain the rating. We assess LS Newco to be "moderately strategic" to Leighton Holdings. As a result, we have assigned a 'BB+' rating with a stable outlook to the company. We also assigned 'BB+' ratings to the company's proposed term loan B and revolving credit facility with recovery ratings of '4H'. On April 8, 2015, Standard&Poor's Ratings Services assigned its 'BB+' rating to Australian and New Zealand telecommunication and infrastructure services provider LS Newco Pty Ltd. The
