OREANDA-NEWS. 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.