On Jan. 29, 2008, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Leighton Holdings Ltd. to 'BBB' from 'BBB+'. At the same time, the rating on Leighton's A$200 million convertible unsecured subordinated resettable notes were lowered to 'BB+' from 'BBB-'. The outlook is stable. The 'BB' rating on Leighton Finance International Ltd. was unchanged. The rating downgrade reflects the weak credit quality of Leighton's unrated German parent Hochtief AG and the potential adverse influence that the parent could have on Leighton's credit quality in the event of significant financial stress at Hochtief. Although Standard&Poor's considers that Leighton's standalone credit quality remains unchanged and robust, we have previously noted that Hochtief's increased shareholding in Leighton
