Leading market position in Australia's healthy infrastructure construction and contract mining sectors Significant business, industry, project, and geographic diversity Inherent exposure to the competitive and cyclical-heavy engineering and construction (E&C) sectors The credit quality of the unrated German-based parent, Hochtief AG and the ultimate controlling shareholder, Spanish firm Actividades de Construccion y Servicios SA (Grupo ACS) Moderate financial risk policy Performance risks related to mining contracts and large, complex E&C projects The CreditWatch negative on the rating reflects the uncertainty surrounding the governance arrangements between Leighton Holdings Ltd. and its German-based parent Hochtief AG following the resignation of Leighton's chairman and two non-executive directors. We will seek to resolve the CreditWatch after considering Leighton's response to the director resignations, the
