Fitch: Brazilian Construction Outlook Remains Negative

CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has published a new report on the outlook for the Brazilian Construction sector in 2016.

Fitch believes Brazilian Engineering and Construction companies will have another challenging year ahead.

'The expected lukewarm macroeconomic situation, scarce pipeline of domestic projects, and fiscal restrictions affecting the Banco Nacional de Desenvolvimento Economico e Social's role in funding new infrastructure projects have put pressure on domestic contractors' activities,' said Alexandre Garcia, Associate Director at Fitch. 'Moreover, the risk of heavy fines remains as the Lava-Jato investigation evolves.'

Fitch is also concerned with the maintenance of oil prices at low levels as a large part of the contractors' backlogs comes from countries that depend on oil exports.

The full report 'Outlook 2016: Brazilian Construction' is available at 'www.fitchratings.com'.

Additional information is available at www.fitchratings.com

2016 Outlook: Brazilian Construction (Another Challenging Year Ahead)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874666

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View source version on businesswire.com: http://www.businesswire.com/news/home/20151209006217/en/

Fitch Ratings
Primary Analyst
Alexandre Garcia
Associate Director
+5511-4504-2616
Fitch Ratings Brasil Ltda
Alameda Santos, 700 - 7 andar
Sao Paulo - SP - CEP: 01418-100
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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