Moody's might lower Leighton

Moody's Investors Service said it placed the Baa2 issuer rating of Leighton Holdings Ltd. and the senior unsecured rating of Leighton Finance (USA) Pty Ltd. on review for downgrade.

Moody's said the action follows by Leighton's majority shareholder, Hochtief Aktiengesellschaft's announcement that it intends to increase its stake in Leighton from 58.8% to a maximum of 74.23% for a total cash consideration of about A$1.15 billion. At the same time, Hochtief announced its intention to increase its representation on the Leighton Board to reflect its majority interest in Leighton.

"The review reflects the uncertainty regarding the future financial and business profile of Leighton, should the proposal proceed as announced," Moody's vice president and senior analyst Maurice O'Connell said in a news release, adding "The review also considers Moody's view that Hochtief and its majority owner Actividades de Construccion Servicios SA's have lower credit quality than Leighton."

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