India Ratings
CORPORATE India Ratings: Construction Sector Outlook Negative on Deteriorating Credit Metrics J an 11, 2013 India Ratings has revised its Outlook on Indian construction companies to Negative for 2013 from Stable in FY12. This is due to continuing challenges in order execution which have resulted in stretched working capital. Liquidity as well as financial leverage has been adversely affected in many construction companies which have ventured into build-operate-transfer (BOT) projects due to the challenges in raising equity to fund these projects. The rating levels of India Ratings-rated construction companies have already factored in some of the execution risks; this contributes to the high proportion of Stable Outlooks. Some companies with deteriorated credit metrics also have Stable Outlooks as India Ratings has already taken sufficient action to accommodate foreseeable stress. India Ratings continues to be concerned about continuing slow project execution, despite ...