Moody's Investors Service lowered its ratings on Babcock & Brown Infrastructure Group, GPT Group and Wyuna Water and placed Boral Ltd. on review for possible downgrade.BBI's senior secured rating was lowered two notches to junk, at 'Ba2', concluding a review initiated in mid June. Moody's also assigned a corporate family rating one notch higher at 'Ba1' - the senior secured rating is impacted by structural subordination. The outlook on both ratings is negative.Moody's noted BBI's weak financial profile stems from its aggressive debt-funded growth and this is creating continuing liquidity challenges.GPT Group saw its long-term rating lowered one notch to 'Baa2' and its short-term rating similarly lowered to 'P-3'. Both ratings were left on review for possible downgrade. GPT's financial flexibility and liquidity is being challenged by debt maturities to March 2009 and it is running up against financial covenants in its debt documentation. GPT's liquidity position is expected to improve if asset sales proceed as planned.Wyuna Water Pty Ltd. supplies water to Sydney Water Corporation and its operations are subcontracted to an Australian subsidiary of Veolia Environment SA. Its long-term rating was lowered four notches by Moody's, to A3, as a result of changes to Moody's methodology for rating PPPs announced in December 2007. Moody's said the change in rating is consistent with changes made to the ratings of other Australian PPPs.Boral's 'Baa1' long-term rating is on review for possible downgrade. Moody's noted the sustained downturn in the Australian and US housing markets, which is constraining earnings and high dividend pay-outs and capital expenditures, has constrained credit metrics. Standard & Poor's revised the outlook on the 'AAA' rating assigned to NSW to negative after the vote on the proposed sale of the state's retail electricity assets was delayed. S&P is concerned about the potential for negative pressure on the state's credit quality.S&P believes it is unlikely that the sale will proceed and this will diminish the state's flexibility to manage its infrastructure priorities. Critically, the state's long-term credit rating could be lowered to AA+, if it "fails to reprioritise its capital program".This would be a blow for NSW's cost of debt going forward. Only Tasmania is rated AA+ by S&P, although the Northern Territory government is not rated. All the other states and the ACT are rated 'AAA' by S&P and have stable outlooks assigned to their ratings.