leighton is now a subsidiary $2bn writedown., page-8

1st part of long article in today's Oz. Now talking of "junk" status! Take the $23 and run imo.

'THE NSW government is monitoring its exposure to the Leighton group amid concerns about a looming downgrade of the company's credit rating after the ACS-backed Hochtief's move to take control of the board.

It is understood senior government officials have expressed concerns about the implications for the state of its exposure to Leighton across a range of major infrastructure contracts if the company's debt is downgraded to "junk" status.

The Leighton group has a number of major contracts in NSW, including stage one of the $1.15 billion North West Rail Link project in Sydney, which is a joint venture between Thiess, John Holland and the ACS-controlled Dragados.

Thiess is also part of a consortium building the new Royal North Shore Hospital, while John Holland has been awarded the contract to deliver works for the South West Rail Link project.

Credit ratings agencies Standard & Poor's and Moody's put Leighton's credit ratings on review for downgrade last week, warning that increased control by ACS could lead to the Australian group being viewed as an "integrated subsidiary" of the Spanish group.