The ratings on Leighton Holdings Ltd. (Leighton or the company) reflect the company's: leading market position in Australia's infrastructure construction and contract mining sectors; significant business, industry, project, and geographic diversity; favorable operational track record; and an adequate financial profile. The ratings also reflect the inherent exposure to the competitive and cyclical heavy engineering and construction (E&C) sectors; and the performance risks related to mining contracts and large and complex projects. In addition, Leighton's rating cannot be considered in isolation from the weaker credit profile of its major shareholder, Germany-based Hochtief AG (not rated) and the potential influence this parent could exert on Leighton's financial policies. Despite an improvement in Hochtief's creditworthiness in the past 12 months, Standard&Poor's
