The new rating also reflects Moody's opinion that the firm's effort to expand its position as a global real estate provider, which a portion of the sale proceeds will help finance, may not add to its bottom line for some time because of the difficulties in integrating disparate and geographically diverse businesses. Also, it is unclear how the balance of the proceeds will be used, whether for stock buyback, acquisitions or otherwise. Moody's also states that a substantial portion of the firm's revenues are performance and transaction based and exposed to the volatility of the property cycle.

Lend Lease, although judged by Moody's as a company in transition and one that has adopted a strategy that may not succeed, has successfully made moves to become a global property services company with substantial recurring fee revenues, the rating service notes. Moody's also states that Lend Lease's net exposure to property development, a major negative credit factor in the past, is down and likely to remain so.