Leighton has been taken off negative credit watch following the internal board turmoil in March that prompted ratings agency action.
Standard & Poor’s affirmed the construction giant’s BBB-/A-3 credit and stable outlook and removed its negative credit watch.
S&P acted when Leighton’s chairman Stephen Johns and two other directors dramatically quit in March.
That was in relation to worries about interference in the company from Spanish group ACS through Hochtief, which it majority owns and which in turn has a 40 per cent stake in Leighton.
Friday’s move was partly related to Hochtief saying it would not seek control of Leighton’s board.
However S&P said it was still concerned about those governance issues and Hochtief and ACS’s own weaker credit positions adversely affecting Leighton, thus limiting any ratings upgrades.
Leighton also lost its spot in the S&P/ASX50 index of the stock market’s top 50 companies on Friday in a quarterly adjustment.
Its shares were sold off on Friday, losing 68 cents, of four per cent, to close at $16.32.
