The ratings on Australian-based Leighton Holdings Ltd. reflect our opinion of 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 parent, Hochtief AG (not rated); 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. Standard&Poor's Ratings Services believes that Leighton's German-based parent Hochtief could adversely influence Leighton's credit quality in the event of significant financial stress at Hochtief. In our view, Hochtief's business profile and financial metrics are weaker than Leighton's
