The rating on Leighton Holdings Ltd. reflects the company's established position as Australia's largest construction and contract-mining group; the sector, geographic, and project diversity of its operations across Australia and Asia; its adequate financial and operations policies; solid and large balance sheet, strong work-in-hand position; and positive prospects for the Australian operations. The rating, however, is constrained by the risks involved in large construction and mining projects, some exposure to more volatile emerging markets, and uncertainties related to the level of influence from majority shareholder Hochtief. Leighton's creditworthiness is enhanced by diversified interests in engineering and building construction; contract mining; property development; telecommunications; environmental services; and operation and maintenance of infrastructure and facilities. The diversity of large and small construction
