Leighton expects to report a loss of A$427 million in fiscal 2011, compared with its previous guidance of a A$480 million profit after tax. We have placed the ratings on Leighton on CreditWatch with negative implications, reflecting the difficulties facing two of the company's major Australian projects and underperformance of its investment in the Middle East. We are also monitoring Grupo ACS's shareholding in Hochtief AG (Leighton's parent) amid concerns that Grupo ACS's increasing ownership stake may have implications on the business and financing strategy of Hochtief. On April 12, 2011, Standard&Poor's Ratings Services placed its 'BBB' long-term and 'A-2' short-term corporate credit ratings on Australian-based engineering and construction company Leighton Holdings Ltd. (Leighton) on CreditWatch with negative
