S&P: Construtora Norberto, Camargo Correa to negative

Standard & Poor’s said it revised the outlook on Construtora Norberto Odebrecht SA to negative from stable.

The agency also said it affirmed the company’s BBB global scale corporate credit rating, along with its national scale long-term corporate credit rating at brAAA. S&P also raised its national scale short-term corporate credit rating to brA-1+ from brA-1 following the agency’s updated national scale criteria.

S&P also revised the outlook Camargo Correa SA to negative from positive and affirmed the company’s BB global scale corporate credit rating. The agency also said it lowered its national scale issue-level rating to brAA- from brAA, reflecting the outlook revision on global scale rating and weakening position in relation to the company’s national-scale rated peers.

The negative outlook reflects potential downgrades of both companies’ ratings in light of the ongoing corruption investigations over allegations of overpriced contracts between the Brazilian E&C companies and Petroleo Brasileiro SA – Petrobras. This could significantly raise contingent and reputational risks for the sector, S&P said.

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