The 'BBB' long-term corporate credit rating on Leighton Holdings Ltd. (Leighton) reflects 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 intermediate financial risk profile. The rating also reflects the parent's weaker credit quality, an inherent exposure to the competitive and cyclical-heavy engineering and construction (E&C) sectors; and the performance risks related to mining contracts and large, complex E&C projects. The rating on Leighton was recently lowered, reflecting Standard&Poor's Ratings Services' opinion that the weaker credit quality of Leighton's unrated German parent Hochtief AG could have a potential adverse influence on Leighton's credit quality in the event of significant financial stress at
