and it is a downgrade

Leighton Holdings Limited today announced that during the Quarterly Reviews of its Operating Companies, which are currently underway, it has identified a deterioration in the financial performance of Airport Link (APL) and the Victorian Desalination Project (VDP). The deterioration is anticipated to be $148 million before tax for APL and $106 million before tax for VDP. This is a reduction in forecast profit of $254 million before tax which will be reflected in the current financial year to 31 December 2012.