We have kept the ratings on Leighton on CreditWatch with negative implications. We are continuing to monitor 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. We expect to resolve the CreditWatch after reviewing the Grupo ACS half-year financial results, although we believe that any downgrade is likely to be limited to one notch. On July 21, 2011, Standard&Poor's Ratings Services kept 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 implications, where they were placed on April 12, 2011. The rated debt issues of Leighton
