The recent losses on two large construction projects and write-downs in Leighton Holdings Ltd.'s Gulf investment have weakened Leighton's business risk profile and overall credit quality, in our view. We believe that Hochtief's business profile and financial metrics continue to constrain Leighton's overall credit profile. As a result, we have lowered the long- and short-term ratings on Leighton to 'BBB-/A-3' from 'BBB/A-2'. The outlook is stable. On Oct. 18, 2011, Standard&Poor's Ratings Services lowered its long-term and short-term corporate credit ratings, and debt issue ratings, on Australian-based engineering and construction company Leighton Holdings Ltd. to 'BBB-/A-3', from 'BBB/A-2'. At the same time, the ratings were removed from CreditWatch with negative implications, where they were placed on April 12,
