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 weaker credit quality of Leighton's 55% owner, Hochtief AG (unrated); 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. Leighton's significant market presence and operational diversity support the company's solid business profile. At Sept. 30, 2008, the group had secured A$35.3 billion of work in hand, representing about 2.5 years of annual revenue. The outlook for Leighton's
